AML3D's Stock Sinks To AU$0.061, But Insiders Sold Even Lower

Even though AML3D Limited (ASX:AL3) has fallen by 13% over the past week , insiders who sold AU$240k worth of stock over the past year have had less luck. The average selling price of AU$0.08 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

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

See our latest analysis for AML3D

The Last 12 Months Of Insider Transactions At AML3D

Over the last year, we can see that the biggest insider sale was by the CTO & Director, Andrew Michael Sales, for AU$240k worth of shares, at about AU$0.08 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.061. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Andrew Michael Sales.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like AML3D better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that AML3D insiders own 26% of the company, worth about AU$3.8m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The AML3D Insider Transactions Indicate?

It doesn't really mean much that no insider has traded AML3D shares in the last quarter. Our analysis of AML3D insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, AML3D has 4 warning signs (and 2 which are significant) we think you should know about.

But note: AML3D 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.