When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Atmus Filtration Technologies Inc.'s (NYSE:ATMU) instance, it's good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Atmus Filtration Technologies Insider Transactions Over The Last Year

The Independent Non-Executive Chairman Stephen Macadam made the biggest insider purchase in the last 12 months. That single transaction was for US$260k worth of shares at a price of US$31.56 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$37.38. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Atmus Filtration Technologies insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Atmus Filtration Technologies Have Bought Stock Recently

Over the last quarter, Atmus Filtration Technologies insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$460k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Atmus Filtration Technologies

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Atmus Filtration Technologies insiders own about US$15m worth of shares. That equates to 0.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Atmus Filtration Technologies Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Atmus Filtration Technologies insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for Atmus Filtration Technologies you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

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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.