Sell Atmus Filtration

March 19, 2024

ATMU: $25.92


ATMU shares just showed up in my Schwab account. As such, I’m recommending selling the ATMU shares received and closing out the CMI/ATMU exchange offer. The trade worked well, generating a 14% / $3,800 profit in 12 days.

Additional Thoughts on ATMU

I like the company and stock a lot and may recommend it in the future. See my deep dive for additional thoughts. However, I think there will be selling pressure for the foreseeable future as CMI investors who exchanged their shares to take advantage of the arbitrage sell their ATMU shares.

Historically, companies like ATMU that are spun off through an exchange offer decline by about 3% after the exchange offer is complete and underperform the S&P 500 by 4%.

However, after selling pressure has been exhausted exchange offer spin-offs typically go on to perform very well as shown below.


Rich Howe, owner of Stock Spin-off Investing (“SSOI”), owns ATMU shares but plans to sell them. He may hedge his ATMU exposure if shares become available to short but is comfortable participating in the exchange offer unhedged if they do not. All expressions of opinion are subject to change without notice. This article is provided for informational purposes. We do not warrant the completeness or accuracy of this content. Please do your own due diligence and consult with an investment adviser before buying or selling any stock mentioned on