Ai-Media Technologies Insider Purchases Yet To Pay Off Regardless Of Recent Strength

Some of the losses seen by insiders who purchased AU$562.7k worth of Ai-Media Technologies Limited (ASX:AIM) shares over the past year were recovered after the stock increased by 12% over the past week. However, total losses seen by insiders are still AU$311k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Ai-Media Technologies Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Co-Founder Anthony Abrahams bought AU$525k worth of shares at a price of AU$0.53 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.24). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 1.05m shares worth AU$563k. But insiders sold 1.36m shares worth AU$485k. In total, Ai-Media Technologies insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Ai-Media Technologies

Ai-Media Technologies is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Ai-Media Technologies Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 29% of Ai-Media Technologies shares, worth about AU$14m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Ai-Media Technologies Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Ai-Media Technologies shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Ai-Media Technologies and we see no evidence to suggest they are worried about the future. 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. You'd be interested to know, that we found 1 warning sign for Ai-Media Technologies and we suggest you have a look.

Of course Ai-Media Technologies may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.