Quite a few insiders have dramatically grown their holdings in ATCO Ltd. (TSE:ACO.X) 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for ATCO

The Last 12 Months Of Insider Transactions At ATCO

In the last twelve months, the biggest single purchase by an insider was when Vice Chairman of the Board Linda Southern-Heathcott bought CA$1.7m worth of shares at a price of CA$49.44 per share. That means that an insider was happy to buy shares at above the current price of CA$47.57. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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.

In the last twelve months insiders purchased 316.55k shares for CA$15m. On the other hand they divested 1.11k shares, for CA$49k. Overall, ATCO insiders were net buyers during the last year. 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!TSX:ACO.X Insider Trading Volume March 11th 2025

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this freelist of companies. (Hint: insiders have been buying them).

Insiders At ATCO Have Bought Stock Recently

It's good to see that ATCO insiders have made notable investments in the company's shares. Director Dawn Farrell spent CA$500k on stock, and there wasn't any selling. This makes one think the business has some good points.

Does ATCO Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.3% of ATCO shares, worth about CA$73m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About ATCO Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of ATCO 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. For example - ATCO has 1 warning sign we think you should be aware of.

Story Continues

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this freelist of interesting companies, that have HIGH return on equity 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.

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