Atlantic Lithium Limited (LON:ALL) insiders profited after selling stock worth UK£0.50 at AU$0.57 earlier this year.

Atlantic Lithium Limited's (LON:ALL) stock rose 31% last week, but insiders who sold AU$342k worth of stock over the last year are probably in a more advantageous position. Selling at an average price of AU$0.57, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Atlantic Lithium

Atlantic Lithium Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Interim CEO, Lennard Kolff van Oosterwijk, sold UK£342k worth of shares at a price of UK£0.57 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of UK£0.50. So it may not shed much light on insider confidence at current levels. Lennard Kolff van Oosterwijk was the only individual insider to sell shares in the last twelve months.

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.

Does Atlantic Lithium 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Atlantic Lithium insiders own 1.1% of the company, worth about UK£3.3m. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.

So What Do The Atlantic Lithium Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. The insider transactions at Atlantic Lithium are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Atlantic Lithium. For instance, we've identified 4 warning signs for Atlantic Lithium (2 are a bit unpleasant) you should be aware of.

Of course Atlantic Lithium 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, but not derivative transactions.

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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.