Atlas Lithium Insiders Benefitted From Selling Stock At US$4.05

While it’s been a great week for Atlas Lithium Corporation (NASDAQ:ATLX) shareholders after stock gained 16%, not so much for insiders who sold stock over the past year. The value of their investment would have been higher had they waited to sell their stock.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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Atlas Lithium Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Robert Roger Noriega, sold US$103k worth of shares at a price of US$4.45 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$7.15. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 6.6% of Robert Roger Noriega's stake. The only individual insider seller over the last year was Robert Roger Noriega.

Robert Roger Noriega divested 50.00k shares over the last 12 months at an average price of US$4.05. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Atlas Lithium

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Does Atlas Lithium Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Atlas Lithium insiders own 28% of the company, worth about US$37m. 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 Atlas Lithium Insider Transactions Indicate?

The fact that there have been no Atlas Lithium insider transactions recently certainly doesn't bother us. Still, the insider transactions at Atlas Lithium in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. 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. To that end, you should learn about the 5 warning signs we've spotted with Atlas Lithium (including 3 which are concerning).

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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 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.