 Atlantic Power Inc NYSE:AT was trading 4.3 higher from the previous closing price. Ronan Terrence filed a Form 4 with the SEC on Friday, June 26. The insider bought 2,600 shares at an average price of 1.85. After the transaction, the executives stake in Atlantic Power Inc. moved to 550,752 shares.The Importance of Insider Transactions While transactions from an insider shouldnt 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.Insiders buying stock after a notable sell off can indicate an insiders long-term belief in the success of the company; insiders buying stock at new highs can be an indication the exec doesnt feel the stock is overvalued. Insiders who sell stock at new lows could be anticipating some capitulation moment. If the insider sells at new highs, it could point to the intention to take some profit and lock in a gain.Important Transaction Codes Wall Street tends to focus on insider transactions which take place in the open market, viewed inside a Form 4 filing via 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.See more from Benzinga Insider Buys Atlantic Powers SharesC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 