Senior VP & Chief Human Resources Officer Tina Busch Sold A Bunch Of Shares In ATI

We wouldn't blame ATI Inc. (NYSE:ATI) shareholders if they were a little worried about the fact that Tina Busch, the Senior VP & Chief Human Resources Officer recently netted about US$657k selling shares at an average price of US$66.41. That sale reduced their total holding by 28% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for ATI

The Last 12 Months Of Insider Transactions At ATI

In the last twelve months, the biggest single sale by an insider was when the Executive Chairman, Robert Wetherbee, sold US$1.4m worth of shares at a price of US$56.35 per share. That means that an insider was selling shares at slightly below the current price (US$62.76). 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. We note that the biggest single sale was only 6.3% of Robert Wetherbee's holding.

In the last year ATI insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does ATI 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. ATI insiders own about US$106m worth of shares (which is 1.2% 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.

So What Does This Data Suggest About ATI Insiders?

Insiders haven't bought ATI stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for ATI you should know about.

Of course ATI 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.