Atlas Trinity Tech Falls To US$2.23, But Insiders Sold At Lower Price

Atlas Trinity Tech Limited's (NASDAQ:ATTT) value has fallen 11% in the last week, but insiders who sold HK$335k worth of stock over the last year have had less success. Given that the average selling price of HK$3.02 is still lower than the current share price, insiders would probably have been better off keeping their shares.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Atlas Trinity Tech

In the last twelve months, the biggest single sale by an insider was when the insider, Zhiwei Liu, sold US$335k worth of shares at a price of US$3.02 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$2.23. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Zhiwei Liu.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Atlas Trinity Tech

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Insiders At Atlas Trinity Tech Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Atlas Trinity Tech. In total, insider Zhiwei Liu sold US$335k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Atlas Trinity Tech insiders own 11% of the company, worth about US$1.5m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Atlas Trinity Tech Tell Us?

An insider sold Atlas Trinity Tech shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. When you consider that most companies have higher levels of insider ownership, we're a little wary. 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. For instance, we've identified 3 warning signs for Atlas Trinity Tech (1 can't be ignored) you should be aware of.

But note: Atlas Trinity Tech 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 of direct interests only, but not derivative transactions or indirect interests.

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