Augmedix's US$30m Market Cap Fall Books Insider Losses

Insiders who bought US$168.1k worth of Augmedix, Inc.'s (NASDAQ:AUGX) stock at an average buy price of US$4.60 over the last year may be disappointed by the recent 15% decrease in the stock. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$126.0k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Augmedix

The Last 12 Months Of Insider Transactions At Augmedix

In the last twelve months, the biggest single purchase by an insider was when Independent Director Margie Traylor bought US$120k worth of shares at a price of US$4.51 per share. That means that an insider was happy to buy shares at above the current price of US$3.45. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Augmedix insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Augmedix is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Augmedix

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. We usually like to see fairly high levels of insider ownership. Insiders own 3.2% of Augmedix shares, worth about US$5.8m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Augmedix Insiders?

The fact that there have been no Augmedix insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Augmedix stock. 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. When we did our research, we found 3 warning signs for Augmedix (1 is potentially serious!) that we believe deserve your full attention.

But note: Augmedix may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.