Anterix Inc. (NASDAQ:ATEX) insiders must be happy they sold stock as market cap drops to US$1.0b

Over the past year, insiders sold US$473k worth of Anterix Inc. (NASDAQ:ATEX) stock at an average price of US$57.05 per share allowing them to get the most out of their money. The company's market valuation decreased by US$53m after the stock price dropped 5.0% over the past week, but insiders were spared from painful losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Anterix

The Last 12 Months Of Insider Transactions At Anterix

Over the last year, we can see that the biggest insider sale was by the Executive Chairman, Morgan O'Brien, for US$282k worth of shares, at about US$56.50 per share. That means that an insider was selling shares at around the current price of US$55.38. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Happily, we note that in the last year insiders paid US$421k for 7.10k shares. But insiders sold 8.30k shares worth US$473k. Over the last year we saw more insider selling of Anterix shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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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. We usually like to see fairly high levels of insider ownership. It appears that Anterix insiders own 1.7% of the company, worth about US$17m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Anterix Tell Us?

It doesn't really mean much that no insider has traded Anterix shares in the last quarter. Still, the insider transactions at Anterix in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. 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 3 warning signs we've spotted with Anterix (including 1 which is potentially serious).

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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, but not derivative transactions.

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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.