Even if it's not a huge purchase, we think it was good to see that Caroline Foulger, a Atlas Arteria Limited (ASX:ALX) insider, recently shelled out AU$58k to buy stock, at AU$6.87 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
Atlas Arteria Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Derek Stapley bought AU$148k worth of shares at a price of AU$8.50 per share. That means that even when the share price was higher than AU$6.83 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Atlas Arteria insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around AU$6.95. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Atlas Arteria is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Atlas Arteria
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own AU$3.5m worth of Atlas Arteria stock, about 0.06% of the company. We prefer to see high levels of insider ownership.
So What Do The Atlas Arteria Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Atlas Arteria insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Atlas Arteria. Be aware that Atlas Arteria is showing 5 warning signs in our investment analysis, and 1 of those is significant...
Of course Atlas Arteria 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. 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. Thank you for reading.