Insider Sells Altair International Stock

Erop Capital Llc filed a Form 4 with the SEC on Monday, December 14. The insider sold 30,559 of Altair Intl Inc ATAO shares at $0.26 on Friday, Dec 04, sold 43,500 shares at $0.29 on Monday, Dec 07, sold 63,800 shares at $0.29 on Tuesday, Dec 08, sold 10,000 shares at $0.30 on Wednesday, Dec 09, and sold 74,000 shares at $0.29 on Thursday, Dec 10. . After the transactions, the executive's stake in Altair Intl Inc. movedto 50,450,604 shares. Shares of Altair Intl moved higher by 5% from the previous closing price.

Why Insider Transactions Are Important?

While transactions from an insider shouldn't be used as the sole item to make an investment or trading decision, an insider buying or selling stock in their company can be a good added factor that leads to more conviction in a decision.

When an insider buys stock after an important sell off, that can indicate the insider's faith in the success of the organization. Henceforth, if the stock is bought at new highs, it might be because the insider feels that the stock is not overvalued. Conversely, insiders who are selling stock at new lows can potentially indicate some kind of capitulation moment. Insiders selling at new highs can indicate that exec wants to "take some profit" and "lock in a gain."

Important Transaction Codes

Investors prefer focusing on transactions which take place in the open market, indicated in the Form 4 with codes P for purchase and S for sale. An open-market transaction means the insider went into the market of their own volition and made an active decision about the potential path for a company and its stock moving forward.

Transaction codes other than P or S are often viewed with less conviction as they are often not tied to a decision by the exec. As an example, transaction code C indicates the conversion of an option. Transaction code A indicates the insider may have been forced to sell shares in order to receive compensation the exec was promised upon being hired by a company.