While it may not be a big deal, we thought it was good to see the Aterian plc (LON:ATN) Executive Chairman, Charles Bray, recently purchased £61,000 worth of shares at UK £0.0081 per share. That purchase may not have been huge, but it increased their stake by 11%.
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The last 12 months of insider trading at Aterian
In particular, that recent purchase by Charles Bray is the largest insider buy of Aterian stock we’ve seen in the past year. That means an insider was happy to buy shares at the current price of £0.0085. That means they’ve been optimistic about the company in the past, though they may have changed their minds. We always like to see insider buying, but it’s worth noting if those purchases were made well below the current share price, as the discount to value may have narrowed with the rising price. The good news for Aterian shareholders is that an insider bought at the current price. The only individual insider to buy in the past year was Charles Bray.
The chart below shows insider trading (by companies and individuals) over the past year. If you click on the chart you can see all the individual trades, including the share price, individual and the date!
LSE:ATN Insider Trading Volume May 6, 2023
LSE:ATN Insider Trading Volume May 6, 2023There are always plenty of stocks that insiders buy. So if that fits your style, you could look at each stock one by one or you could look at this free list of companies. (Hint: insiders bought them).
Does Aterian have high insider ownership?
Many investors like to check how much of a company is owned by insiders. I think it’s a good sign if insiders own a significant amount of stock in the company. Aterian insiders own about £1.8 million worth of shares. That corresponds to 21% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So what does this data suggest about Aterian insiders?
It’s certainly positive to see the recent insider purchase. We also draw confidence from the long-term picture of insider trading. But we don’t feel the same way about the company making a loss. Insiders likely see value in Aterian stock given these transactions (along with notable insider ownership of the company). While we like to know what’s going on with the insider’s ownership and transactions, we also consider the risks a stock faces before making an investment decision. For example, Aterian has 6 warning signs (and 4 that are a bit off-putting) that we think you should know.
But watch out: Aterian may not be the best stock to buy. So check this out free list of interesting companies with high ROE and low debt.
For the purposes of this section, insiders are those persons who report their transactions to the relevant regulatory authority. We currently take into account open market transactions and private placements, but not derivatives transactions.
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