Yahoo Finance ATCO Chair & CEO Acquires 6.2% More Stock
ATCO Ltd. (TSE:ACO.X) shareholders (or potential shareholders) will be happy to see that the Chair & CEO, Nancy Southern, recently bought a whopping CA$931k worth of stock, at a price of CA$37.22. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 6.2%.
Check out our latest analysis for ATCO
ATCO Insider Transactions Over The Last Year
The insider Margaret Southern made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.8m worth of shares at a price of CA$48.05 each. That means that even when the share price was higher than CA$36.60 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 449.49k shares worth CA$21m. But they sold 242.00 shares for CA$11k. In the last twelve months there was more buying than selling by ATCO insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
ATCO is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that ATCO insiders own 1.2% of the company, worth about CA$51m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At ATCO Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of ATCO we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ATCO. While conducting our analysis, we found that ATCO has 1 warning sign and it would be unwise to ignore this.
But note: ATCO may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
