A number of Atlanticus Holdings Corporation (NASDAQ:ATLC) insiders sold their shares in the last year, which may have raised concerns among investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Atlanticus Holdings Insider Transactions Over The Last Year
In fact, the recent sale by Independent Director Deal Hudson was not their only sale of Atlanticus Holdings shares this year. They previously made an even bigger sale of -US$83k worth of shares at a price of US$35.16 per share. That means that an insider was selling shares at around the current price of US$32.96. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In total, Atlanticus Holdings insiders sold more than they bought over the last year. 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!
I will like Atlanticus Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Atlanticus Holdings Insiders Are Selling The Stock
Over the last three months, we've seen a bit of insider selling at Atlanticus Holdings. Independent Director Deal Hudson divested only US$20k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.
Does Atlanticus Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Atlanticus Holdings insiders own 68% of the company, currently worth about US$331m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Atlanticus Holdings Tell Us?
While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we're not worried. While we feel good about high insider ownership of Atlanticus Holdings, we can't say the same about the selling of shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for Atlanticus Holdings you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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