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Bullish Atomos Limited (ASX:AMS) insiders filled their treasuries with AU$920k worth of stock over last year

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Atomos Limited's (ASX:AMS) case, it's fantastic news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Atomos

Atomos Insider Transactions Over The Last Year

The insider Stephen Stanley made the biggest insider purchase in the last 12 months. That single transaction was for AU$217k worth of shares at a price of AU$1.25 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.10). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Atomos insiders bought shares during the last year, they didn't sell. They paid about AU$0.39 on average. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

Atomos is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Atomos

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Atomos insiders own 7.5% of the company, worth about AU$2.2m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Atomos Insiders?

It doesn't really mean much that no insider has traded Atomos shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Atomos stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Atomos. To that end, you should learn about the 4 warning signs we've spotted with Atomos (including 1 which can't be ignored).

But note: Atomos 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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