Q: I believe that a little over a month ago the Atco CEO purchased $931K of stock at $37.22 - a 6.2% increase in ownership. Is this enough conviction to get someone interested in taking a position in the stock?
5i Research Answer:
Total insider ownership is 0.52%. While this was a significant purchase, we would not take this in isolation as a reason to buy. Insiders only buy for one reason, but can be wrong like the rest of us. But, ACO is very cheap, has stable cash flow, pays a 5.2% dividend, and likely will do much better in a lower interest rate environment. We would consider it a decent income stock, and the insider buying is just one factor, albeit a positive one.