Whilst it may not be a huge deal, we thought it was good to see that the Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW) Independent Director, Charles Bolden, recently bought US$50k worth of stock, for US$23.46 per share. Even though that isn't a massive buy, it did increase their holding by 210%, which is a arguably a good sign.
The Last 12 Months Of Insider Transactions At Atlas Air Worldwide Holdings
Over the last year, we can see that the biggest insider purchase was by Independent Director John Wulff for US$199k worth of shares, at about US$39.75 per share. That means that an insider was happy to buy shares at above the current price of US$26.66. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Atlas Air Worldwide Holdings insiders bought shares last year, they didn't sell. The average buy price was around US$34.86. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 2.0% of Atlas Air Worldwide Holdings shares, worth about US$13m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Atlas Air Worldwide Holdings Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Atlas Air Worldwide Holdings shares, given these transactions (along with notable insider ownership of the company). If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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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