Insiders At Advanced Health Intelligence See Good Returns After Buying Stock Worth AU$1.0m

Advanced Health Intelligence Ltd. (ASX:AHI) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 15% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of AU$1.0m is now worth AU$1.96m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Advanced Health Intelligence

Advanced Health Intelligence Insider Transactions Over The Last Year

The Co-Founder & Executive Director Katherine Iscoe made the biggest insider purchase in the last 12 months. That single transaction was for AU$1m worth of shares at a price of AU$0.059 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.12), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Advanced Health Intelligence is not the only stock insiders are buying. So take a peek at this free list of growing companies with 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Advanced Health Intelligence insiders own 28% of the company, worth about AU$7.0m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Advanced Health Intelligence Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Advanced Health Intelligence and their transactions don't cause us concern. While we like knowing 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. To help with this, we've discovered 4 warning signs (2 are potentially serious!) that you ought to be aware of before buying any shares in Advanced Health Intelligence.

But note: Advanced Health Intelligence 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.