This Insider Has Just Sold Shares In Atlanticus Holdings Corporation (NASDAQ:ATLC)

We'd be surprised if Atlanticus Holdings Corporation (NASDAQ:ATLC) shareholders haven't noticed that the Independent Director, Deal Hudson, recently sold US$151k worth of stock at US$30.28 per share. On the bright side, that sale was only 4.9% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Atlanticus Holdings

The Last 12 Months Of Insider Transactions At Atlanticus Holdings

In fact, the recent sale by Deal Hudson was the biggest sale of Atlanticus Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$32.38). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 4.9% of Deal Hudson's holding.

Deal Hudson sold a total of 12.00k shares over the year at an average price of US$19.33. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Atlanticus Holdings 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Atlanticus Holdings insiders own about US$309m worth of shares (which is 66% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Atlanticus Holdings Tell Us?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But it is good to see that Atlanticus Holdings is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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 3 warning signs for Atlanticus Holdings that deserve your attention before buying any shares.

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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. 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.
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