We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Air Transport Services Group, Inc. (NASDAQ:ATSG).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Air Transport Services Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Director Robert Coretz bought US$544k worth of shares at a price of US$21.75 per share. So it's clear an insider wanted to buy, at around the current price, which is US$23.53. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months insiders purchased 81439 shares for US$1.7m. But insiders sold 1209 shares worth US$28k. In total, Air Transport Services Group insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Air Transport Services Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Air Transport Services Group Insiders Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Air Transport Services Group. Insiders spent US$592k on shares. But Sarah Williams sold shares worth US$28k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Air Transport Services Group insiders own about US$43m worth of shares. That equates to 3.1% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Air Transport Services Group Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Air Transport Services Group insiders are well aligned, and that they may think the share price is too low. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Air Transport Services Group.
But note: Air Transport Services Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.