Insiders who purchased ATS Automation Tooling Systems Inc. (TSE:ATA) shares in the past 12 months are unlikely to be deeply impacted by the stock's 4.2% decline over the past week. After accounting for the recent loss, the CA$107k worth of shares they purchased is now worth CA$164k, suggesting a good return on their investment.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At ATS Automation Tooling Systems
While no particular insider transaction stood out, we can still look at the overall trading.
While ATS Automation Tooling Systems insiders bought shares during the last year, they didn't sell. The average buy price was around CA$26.00. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price of CA$39.75. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
ATS Automation Tooling Systems is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At ATS Automation Tooling Systems Have Bought Stock Recently
It's good to see that ATS Automation Tooling Systems insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$102k worth of shares. This makes one think the business has some good points.
Insider Ownership Of ATS Automation Tooling Systems
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. ATS Automation Tooling Systems insiders own about CA$23m worth of shares. That equates to 0.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At ATS Automation Tooling Systems Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest ATS Automation Tooling Systems insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 1 warning sign for ATS Automation Tooling Systems you should know about.
Of course ATS Automation Tooling Systems may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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