Insiders Of Aterian Reap Rewards After Their Investment Jumps Another US$128m
Aterian, Inc. (NASDAQ:ATER) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 23% resulting in a US$2.4m addition to the company’s market value. As a result, their original purchase of US$64.9m worth of stock is now worth US$193.1m.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Aterian Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO, Chairman & Interim CFO and Principal Financial Officer David Lazar for US$65m worth of shares, at about US$0.26 per share. We do like to see buying, but this purchase was made at well below the current price of US$0.77. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Aterian
Aterian is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Aterian 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Aterian insiders own 57% of the company, currently worth about US$7.2m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Aterian Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Aterian insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. Be aware that Aterian is showing 4 warning signs in our investment analysis, and 3 of those don't sit too well with us...
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.