Don't Ignore The Insider Selling In Ai-Media Technologies

Anyone interested in Ai-Media Technologies Limited (ASX:AIM) should probably be aware that a company insider, Deanne Weir, recently divested AU$485k worth of shares in the company, at an average price of AU$0.36 each. On the bright side, that sale was only 9.7% of their holding, so we doubt it's very meaningful, on its own.

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The Last 12 Months Of Insider Transactions At Ai-Media Technologies

Notably, that recent sale by insider Deanne Weir was not the only time they sold Ai-Media Technologies shares this year. They previously made an even bigger sale of -AU$1.8m worth of shares at a price of AU$0.83 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of AU$0.57. So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 1.67m shares for AU$1.1m. But insiders sold 6.65m shares worth AU$3.8m. Deanne Weir divested 6.65m shares over the last 12 months at an average price of AU$0.57. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Ai-Media Technologies

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Does Ai-Media Technologies 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. Ai-Media Technologies insiders own about AU$33m worth of shares. That equates to 28% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Ai-Media Technologies Tell Us?

It's certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn't so positive. We don't take much heart from transactions by Ai-Media Technologies insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for Ai-Media Technologies you should be aware of.

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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.