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Trade Alert: The Independent Non-Executive Director Of Atomos Limited (ASX:AMS), Stephen Stanley, Has Just Spent AU$124k Buying Shares

Simply Wall St

Even if it's not a huge purchase, we think it was good to see that Stephen Stanley, the Independent Non-Executive Director of Atomos Limited (ASX:AMS) recently shelled out AU$124k to buy stock, at AU$1.38 per share. That purchase might not be huge but it did increase their holding by 35%.

View our latest analysis for Atomos

The Last 12 Months Of Insider Transactions At Atomos

In fact, the recent purchase by Stephen Stanley was the biggest purchase of Atomos shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of AU$1.45 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. Stephen Stanley was the only individual insider to buy over the year.

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!

ASX:AMS Recent Insider Trading, December 20th 2019

Atomos 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.

Insider Ownership of Atomos

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 24% of Atomos shares, worth about AU$65m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Atomos Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. Insiders likely see value in Atomos shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Atomos, you should check out this free report on analyst forecasts for the company.

But note: Atomos 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. We currently account for open market transactions and private dispositions, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.