Bullish insiders bet $1.1 million on Air Transport Services Group, Inc. (NASDAQ:ATSG)

A number of insiders have significantly increased their holdings in Airline Services Group, Inc. (NASDAQ:ATSG) over the past 12 months. An insider’s optimism about the company’s prospects is a positive sign.

While we don’t believe shareholders should simply follow insider trades, logic dictates that you pay attention to whether insiders are buying or selling shares.

Check out our latest analysis for Air Transport Services Group

The last 12 months of insider trading at Air Transport Services Group

Insider David Soaper made the biggest insider buy in the last 12 months. This single transaction was for US$998,000 of shares at a price of US$24.97 each. Even though the purchase was made at a significantly lower price than the recent price (US$31.40), we still believe that insider buying is a positive. While this suggests that insiders consider the stock to be undervalued at lower prices, this trade tells us little about what they think of current prices.

Over the past year, we can see that insiders bought 44.98k shares worth $1.1 million. But they sold 17.79,000 shares for $550,000. Over the past twelve months, there have been more buys than sells by Air Transport Services Group insiders. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!

volume-of-insider-trading

There are always plenty of stocks that insiders are buying. So if it suits your style you can check each stock one by one or you can take a look at this free list of companies. (Hint: insiders bought them).

Air Transport Services Group insiders recently sold shares

We have seen more insider selling than insider buying at Air Transport Services Group recently. In total, VP of Human Capital Deborah Loveless sold US$120,000 worth of stock at that time. On the other hand, we note that insiders bought US$60,000 worth of stock. Since the sell really outweighs the buy, we’d say these trades may suggest that some insiders believe the stock isn’t cheap.

Does the airline services group boast of high insider ownership?

I like to look at how many shares insiders own in a company, to help me get a sense of how aligned they are with insiders. We generally like to see fairly high levels of insider ownership. It appears that Air Transport Services Group insiders own 2.4% of the company, worth around $55 million. While this is a high but not exceptional level of insider ownership, it suffices to indicate some alignment between management and small shareholders.

So what does this data suggest about Air Transport Services Group insiders?

Unfortunately, there have been more insider sales of Air Transport Services Group shares than purchases in the past three months. On the other hand, they appear more vivid if you look at the last twelve months. It’s good to see that insiders are shareholders. So we’re not too bothered by recent sales. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. Example: we have identified 2 warning signs for Air Transport Services Group you should be aware.

But note: Air Transport Services Group may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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