Yahoo Finance Atlantic Lithium Insiders Added AU$1.02m Of Stock To Their Holdings
Quite a few insiders have dramatically grown their holdings in Atlantic Lithium Limited (LON:ALL) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Atlantic Lithium
Atlantic Lithium Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive Chairman Neil Herbert for UK£517k worth of shares, at about UK£0.28 per share. That means that an insider was happy to buy shares at above the current price of UK£0.21. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Atlantic Lithium insiders were buying shares, but not selling. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Atlantic Lithium Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Atlantic Lithium. Overall, three insiders shelled out UK£175k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Does Atlantic Lithium Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Atlantic Lithium insiders own about UK£10m worth of shares. That equates to 7.5% of the company. 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 Atlantic Lithium Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Atlantic Lithium we think they are probably pretty confident of a bright future. 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. At Simply Wall St, we've found that Atlantic Lithium has 2 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.
But note: Atlantic Lithium 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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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.
