share_log

21% Of This ATI Insider's Holdings Were Sold

Simply Wall St ·  09/13/2023 18:11

Viewing insider transactions for ATI Inc.'s (NYSE:ATI ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for ATI

ATI Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Senior VP and Chief Legal & Compliance Officer, Elliot Davis, sold US$877k worth of shares at a price of US$30.68 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$44.66. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 21% of Elliot Davis's stake. The only individual insider seller over the last year was Elliot Davis.

Elliot Davis ditched 38.20k shares over the year. The average price per share was US$32.80. 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!

insider-trading-volume
NYSE:ATI Insider Trading Volume September 13th 2023

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does ATI Boast High Insider Ownership?

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. Insiders own 0.9% of ATI shares, worth about US$49m. 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 ATI Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at ATI in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with ATI and understanding this should be part of your investment process.

But note: ATI 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
    Write a comment