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華爾街日報ATI Executive Chairman Robert Wetherbee Sells 44% Of Holding
We wouldn't blame ATI Inc. (NYSE:ATI) shareholders if they were a little worried about the fact that Robert Wetherbee, the Executive Chairman recently netted about US$6.6m selling shares at an average price of US$110. That's a big disposal, and it decreased their holding size by 44%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At ATI
In fact, the recent sale by Robert Wetherbee was the biggest sale of ATI shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$113, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 44% of Robert Wetherbee's stake.
ATI insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for ATI
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of ATI
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. ATI insiders own 0.7% of the company, currently worth about US$108m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At ATI Tell Us?
Insiders haven't bought ATI stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since ATI is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that ATI has 2 warning signs and it would be unwise to ignore these.
Of course ATI 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 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.