Insiders Of Atlanticus Holdings Reap Rewards After Their Investment Jumps Another US$2.2m \
Atlanticus Holdings Corporation (NASDAQ:ATLC) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 19% resulting in a US$77m addition to the company’s market value. As a result, their original purchase of US$8.8m worth of stock is now worth US$11m.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Atlanticus Holdings
The Last 12 Months Of Insider Transactions At Atlanticus Holdings
Over the last year, we can see that the biggest insider purchase was by Executive Chairman David Hanna for US$8.8m worth of shares, at about US$27.15 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$33.79. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Happily, we note that in the last year insiders paid US$8.8m for 325.67k shares. On the other hand they divested 289.85k shares, for US$8.3m. Overall, Atlanticus Holdings insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Atlanticus Holdings 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 Atlanticus Holdings Have Sold Stock Recently
Over the last three months, we've seen notably more insider selling, than insider buying, at Atlanticus Holdings. In that time, Independent Director Denise Harrod dumped US$74k worth of shares. Meanwhile insider Dennis James bought US$9.7k worth. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.
Does Atlanticus Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Atlanticus Holdings insiders own 69% of the company, worth about US$338m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Atlanticus Holdings Tell Us?
Unfortunately, there has been more insider selling of Atlanticus Holdings stock, than buying, in the last three months. On the other hand, the insider transactions over the last year are encouraging. And insider ownership remains quite considerable. So we're happy to look past recent trading. 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. While conducting our analysis, we found that Atlanticus Holdings has 2 warning signs and it would be unwise to ignore these.
Of course Atlanticus Holdings 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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