Possible Bearish Signals With Atlas Energy Solutions Insiders Disposing Stock

In the last year, many Atlas Energy Solutions Inc. (NYSE:AESI) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out 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. So it's clear an insider wanted to take some cash off the table, even below the current price of US$22.71. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 18% of Richard Schmidt's holding.

Over the last year we saw more insider selling of Atlas Energy Solutions shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Atlas Energy Solutions Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Atlas Energy Solutions. insider Gregory Shepard spent US$70k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Atlas Energy Solutions insiders own 29% of the company, currently worth about US$726m based on the recent share price. 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 Do The Atlas Energy Solutions Insider Transactions Indicate?

It is good to see the recent insider purchase. However, the longer term transactions are not so encouraging. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Atlas Energy Solutions insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Atlas Energy Solutions has 3 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

But note: Atlas Energy Solutions may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.