Atomera's Stock Sinks To US$3.60, But Insiders Sold Even Lower

Atomera Incorporated's (NASDAQ:ATOM) value has fallen 29% in the last week, but insiders who sold US$286k worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$5.36 is still lower than the current share price.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Atomera Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chief Financial & Accounting Officer and Corporate Secretary, Francis Laurencio, for US$66k worth of shares, at about US$6.14 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$3.60). So it may not shed much light on insider confidence at current levels.

Atomera insiders didn't buy any shares over the last year. 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!

Check out our latest analysis for Atomera

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Atomera Insiders Are Selling The Stock

The last three months saw significant insider selling at Atomera. In total, insiders dumped US$142k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of Atomera

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Atomera insiders own about US$6.2m worth of shares (which is 4.2% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Atomera Tell Us?

Insiders sold Atomera shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 5 warning signs for Atomera you should be aware of, and 2 of these 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.