ATCO Insiders Placed Bullish Bets Worth CA$18m

In the last year, multiple insiders have substantially increased their holdings of ATCO Ltd. (TSE:ACO.X) stock, indicating that insiders' optimism about the company's prospects has increased.

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

View our latest analysis for ATCO

ATCO Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Margaret Southern for CA$1.8m worth of shares, at about CA$48.05 per share. That means that an insider was happy to buy shares at above the current price of CA$37.64. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 374.49k shares worth CA$18m. On the other hand they divested 242.00 shares, for CA$11k. In the last twelve months there was more buying than selling by ATCO insiders. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Have ATCO Insiders Traded Recently?

The last three months saw some ATCO insider selling. insider Colin Jackson sold just CA$8.0k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.

Insider Ownership Of ATCO

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that ATCO insiders own 1.2% of the company, worth about CA$52m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At ATCO Tell Us?

Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we're not concerned. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think ATCO insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for ATCO that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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.