Insiders probably made the right decision selling US$660k worth of shares earlier this year as American Tower Corporation's (NYSE:AMT)) stock dips by 11%.

By selling US$660k worth of American Tower Corporation (NYSE:AMT) stock at an average sell price of US$236 over the last year, insiders seemed to have made the most of their holdings. After the stock price dropped 11% last week, the company's market value declined by US$12b, but insiders were able to mitigate their losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for American Tower

The Last 12 Months Of Insider Transactions At American Tower

In the last twelve months, the biggest single sale by an insider was when the Senior VP & Chief Accounting Officer, Robert Meyer, sold US$660k worth of shares at a price of US$236 per share. So what is clear is that an insider saw fit to sell at around the current price of US$221. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Robert Meyer was the only individual insider to sell over 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. American Tower insiders own 0.3% of the company, currently worth about US$316m 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 American Tower Tell Us?

The fact that there have been no American Tower insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of American Tower, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing American Tower. At Simply Wall St, we've found that American Tower has 2 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.

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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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