Have Aterian, Inc. (NASDAQ:ATER) Insiders Been Selling Their Stock?

We’d be surprised if Aterian, Inc. (NASDAQ:ATER) shareholders haven’t noticed that the Co-Founder, Yaniv Sarig, recently sold US$134k worth of stock at US$2.56 per share. However, the silver lining is that the sale only reduced their total holding by 7.4%, so we’re hesitant to read anything much into it, on its own.

View our latest analysis for Aterian

The Last 12 Months Of Insider Transactions At Aterian

Notably, that recent sale by Co-Founder Yaniv Sarig was not the only time they sold Aterian shares this year. Earlier in the year, they fetched US$2.68 per share in a -US$446k sale. So we know that an insider sold shares at around the present share price of US$2.60. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.

Insiders in Aterian didn’t buy any shares in the last year. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Aterian

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Aterian insiders own 9.4% of the company, worth about US$16m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

So What Do The Aterian Insider Transactions Indicate?

Insiders sold stock recently, but they haven’t been buying. Looking to the last twelve months, our data doesn’t show any insider buying. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d practice some caution before buying! While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 5 warning signs for Aterian (1 can’t be ignored!) and we strongly recommend you look at these before investing.

But note: Aterian 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.

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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.