AtkinsRéalis Group Insiders Sold CA$11m Of Shares Suggesting Hesitancy

Many AtkinsRéalis Group Inc. (TSE:ATRL) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for AtkinsRéalis Group

AtkinsRéalis Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the President, Ian Edwards, sold CA$7.1m worth of shares at a price of CA$55.67 per share. That means that an insider was selling shares at slightly below the current price (CA$81.26). 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. 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. We note that the biggest single sale was only 41% of Ian Edwards's holding.

Happily, we note that in the last year insiders paid CA$2.9m for 53.62k shares. On the other hand they divested 203.15k shares, for CA$11m. All up, insiders sold more shares in AtkinsRéalis Group 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that AtkinsRéalis Group insiders own 0.3% of the company, worth about CA$48m. 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 AtkinsRéalis Group Insiders?

The fact that there have been no AtkinsRéalis Group insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by AtkinsRéalis Group insiders. The modest level of insider ownership is, at least, some comfort. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course AtkinsRéalis Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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.