We note that the Fathom Digital Manufacturing Corporation (NYSE:FATH) CEO & Director, Ryan Martin, recently sold US$95k worth of stock for US$1.43 per share. It might not be a huge sale, but it did reduce their holding size 21%, hardly encouraging.

View our latest analysis for Fathom Digital Manufacturing

The Last 12 Months Of Insider Transactions At Fathom Digital Manufacturing

In fact, the recent sale by Ryan Martin was the biggest sale of Fathom Digital Manufacturing shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$1.35. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Fathom Digital Manufacturing Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Fathom Digital Manufacturing insiders own 2.1% of the company, worth about US$3.8m. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.

What Might The Insider Transactions At Fathom Digital Manufacturing Tell Us?

An insider sold Fathom Digital Manufacturing shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Fathom Digital Manufacturing you should be aware of.

But note: Fathom Digital Manufacturing 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.

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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.