Viewing insider transactions for Atlas Energy Solutions Inc.'s (NYSE:AESI ) 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.
Check out our latest analysis for Atlas Energy Solutions
The Last 12 Months Of Insider Transactions At Atlas Energy Solutions
The insider, Richard Schmidt, made the biggest insider sale in the last 12 months. That single transaction was for US$6.0m worth of shares at a price of US$17.07 each. That means that even when the share price was slightly below the current price of US$17.22, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 18% of Richard Schmidt's holding. Richard Schmidt was the only individual insider to sell over the last year.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Atlas Energy Solutions Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Atlas Energy Solutions shares. In total, insider Richard Schmidt dumped US$6.0m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
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. It's great to see that Atlas Energy Solutions insiders own 58% of the company, worth about US$994m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Atlas Energy Solutions Insiders?
An insider sold Atlas Energy Solutions shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Atlas Energy Solutions is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 4 warning signs for Atlas Energy Solutions you should be aware of, and 1 of them doesn't sit too well with us.
But note: Atlas Energy Solutions 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.
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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.