Pleasing Signs As A Number Of Insiders Buy Atmus Filtration Technologies Stock

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Atmus Filtration Technologies Inc.'s (NYSE:ATMU) case, it's fantastic news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Atmus Filtration Technologies

Atmus Filtration Technologies Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Stephen Macadam bought US$260k worth of shares at a price of US$31.56 per share. We do like to see buying, but this purchase was made at well below the current price of US$37.75. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Atmus Filtration Technologies insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Atmus Filtration Technologies is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

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. We usually like to see fairly high levels of insider ownership. Insiders own 0.5% of Atmus Filtration Technologies shares, worth about US$15m. 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 Do The Atmus Filtration Technologies Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Atmus Filtration Technologies shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Atmus Filtration Technologies insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Atmus Filtration Technologies. Every company has risks, and we've spotted 2 warning signs for Atmus Filtration Technologies you should know about.

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 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.