Atomos Insiders Still AU$30k Away From Original Investment Value
Insiders who bought AU$247.4k worth of Atomos Limited (ASX:AMS) stock in the last year have seen some of their losses recouped as the stock gained 20% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled AU$30k since the time of purchase.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Atomos Insider Transactions Over The Last Year
The CEO & Executive Director Peter Barber made the biggest insider purchase in the last 12 months. That single transaction was for AU$85k worth of shares at a price of AU$0.0094 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.012. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Peter Barber bought 18.13m shares over the last 12 months at an average price of AU$0.014. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Atomos
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Atomos insiders own about AU$4.8m worth of shares. That equates to 27% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Atomos Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Atomos and their transactions don't cause us concern. 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 6 warning signs for Atomos you should be aware of, and 4 of these are a bit concerning.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.