Don't Ignore The Insider Selling In Atlanticus Holdings

We wouldn't blame Atlanticus Holdings Corporation (NASDAQ:ATLC) shareholders if they were a little worried about the fact that Mitchell Saunders, the Chief Accounting Officer recently netted about US$889k selling shares at an average price of US$55.55. That's a big disposal, and it decreased their holding size by 24%, which is notable but not too bad.

View our latest analysis for Atlanticus Holdings

The Last 12 Months Of Insider Transactions At Atlanticus Holdings

In the last twelve months, the biggest single purchase by an insider was when insider Frank Hanna bought US$7.4m worth of shares at a price of US$28.21 per share. Even though the purchase was made at a significantly lower price than the recent price (US$55.16), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Atlanticus Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Atlanticus Holdings insiders own about US$554m worth of shares (which is 68% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Atlanticus Holdings Tell Us?

Insiders sold Atlanticus Holdings shares recently, but they didn't buy any. But we take heart from prior transactions. On top of that, insiders own a significant portion of the company. So we're happy to look past recent trading. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Atlanticus Holdings. At Simply Wall St, we found 2 warning signs for Atlanticus Holdings that deserve your attention before buying any shares.

Of course Atlanticus Holdings 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.

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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.