Insider Stock Buying Reaches CA$20.7m On ATCO

Over the last year, a good number of insiders have significantly increased their holdings in ATCO Ltd. (TSE:ACO.X). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At ATCO

Over the last year, we can see that the biggest insider purchase was by Chair & CEO Nancy Southern for CA$2.4m worth of shares, at about CA$50.64 per share. So it's clear an insider wanted to buy, at around the current price, which is CA$52.85. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for ATCO share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 419.91k shares worth CA$21m. On the other hand they divested 59.40k shares, for CA$3.0m. In total, ATCO insiders bought more than they sold 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!

Check out our latest analysis for ATCO

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

ATCO Insiders Are Selling The Stock

Over the last three months, we've seen a bit of insider selling at ATCO. Insiders divested only CA$65k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the amount sold isn't enough for us to put any weight on it.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.6% of ATCO shares, worth about CA$97m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About ATCO Insiders?

Insiders haven't bought ATCO stock in the last three months, but there was some selling. But we take heart from prior transactions. And insiders do own shares. So we're happy enough to look past some selling. While it's good to be aware of 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. For example - ATCO has 1 warning sign we think 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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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.