Gregory Shepard Spends US$456k On Atlas Energy Solutions Shares

Investors who take an interest in Atlas Energy Solutions Inc. (NYSE:AESI) should definitely note that insider Gregory Shepard recently paid US$19.55 per share to buy US$456k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Atlas Energy Solutions

The Last 12 Months Of Insider Transactions At Atlas Energy Solutions

In the last twelve months, the biggest single sale by an insider was when the insider, Richard Schmidt, sold US$6.0m worth of shares at a price of US$17.07 per share. That means that an insider was selling shares at slightly below the current price (US$20.02). 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. This single sale was just 18% of Richard Schmidt's stake.

In total, Atlas Energy Solutions insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Atlas Energy Solutions better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

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. Atlas Energy Solutions insiders own about US$640m worth of shares (which is 29% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Atlas Energy Solutions Insiders?

It's certainly positive to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Atlas Energy Solutions. Case in point: We've spotted 3 warning signs for Atlas Energy Solutions you should be aware of, and 1 of these can't be ignored.

Of course Atlas Energy Solutions 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.