Bargain Hunters Take Note: Insider Cluster-Buying At ATI

A particularly strong insider buying signal is what we call a "cluster-buy" where three or more different insiders make open market purchases within a short period of one another. At Allegheny Technologies, Inc (Symbol: ATI), 6 different insiders purchased 16,400 shares at an average price of $18.01/share, for a total of $295,388, with the most recent purchase on August 13, 2019.

Presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money. So when multiple insiders all decide to make purchases around the same time, it could be a strong indication that the stock is undervalued. Below is a table summarizing the insider buys that make up this "cluster":

Purchased Insider Title Shares Price/Share Value
08/13/2019 Robert S. Wetherbee President and CEO 5,000 $18.36 $91,800.00
08/14/2019 Elizabeth C. Powers Senior VP, CHRO 2,000 $18.17 $36,340.00
08/14/2019 Kevin B. Kramer Sr. VP, CCMO 2,500 $17.68 $44,208.00
08/14/2019 Timothy J. Harris Senior VP and CDIO 2,900 $17.80 $51,620.00
08/14/2019 Elliot S. Davis Sr VP, GC, CCO and Secretary 2,000 $17.53 $35,060.00
08/13/2019 M. Leroy Ball Director 2,000 $18.18 $36,360.00

The chart below shows the one year performance of ATI shares, versus its 200 day moving average. Note that ATI's low point in its 52 week range is $17.21 per share, with $30.18 as the 52 week high point — that compares with a last trade of $17.25, with shares currently trading off about 0.8% on the day.

Allegheny Technologies, Inc Chart

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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