It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Auris Medical Holding Ltd. (NASDAQ:EARS).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.
Auris Medical Holding Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Founder Thomas Meyer bought US$122k worth of shares at a price of US$2.83 per share. That means that an insider was happy to buy shares at above the current price of US$1.55. 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 encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Thomas Meyer.
Thomas Meyer bought a total of 84.73k shares over the year at an average price of US$2.69. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Auris Medical Holding Boast High Insider Ownership?
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. From our data, it seems that Auris Medical Holding insiders own 12% of the company, worth about US$609k. Whilst better than nothing, we’re not overly impressed by these holdings.
What Might The Insider Transactions At Auris Medical Holding Tell Us?
It doesn’t really mean much that no insider has traded Auris Medical Holding shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We’d like to see bigger individual holdings. However, we don’t see anything to make us think Auris Medical Holding insiders are doubting the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Auris Medical Holding.
Of course Auris Medical Holding 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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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