American Tower Corporation (REIT) (NYSE:AMT) Insiders Have Been Selling

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in American Tower Corporation (REIT) (NYSE:AMT).

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for American Tower Corporation (REIT)

American Tower Corporation (REIT) Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, JoAnn Reed, sold US$520k worth of shares at a price of US$267 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$220). So it is hard to draw any strong conclusion from it.

Insiders in American Tower Corporation (REIT) didn't buy any shares in the last year. 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!

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American Tower Corporation (REIT) Insiders Are Selling The Stock

The last three months saw significant insider selling at American Tower Corporation (REIT). In total, Senior VP & Chief Accounting Officer Robert Meyer sold US$242k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. It's great to see that American Tower Corporation (REIT) insiders own 0.3% of the company, worth about US$260m. 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 American Tower Corporation (REIT) Insider Transactions Indicate?

An insider hasn't bought American Tower Corporation (REIT) stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that American Tower Corporation (REIT) is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For example, American Tower Corporation (REIT) has 3 warning signs (and 1 which is significant) we think you should know about.

Of course American Tower Corporation (REIT) 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, but not derivative transactions.

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