Imricor Medical Systems Insider Buyers Net US$131k Despite 11% Stock Decline

Insiders who bought Imricor Medical Systems, Inc. (ASX:IMR) in the last 12 months may probably not pay attention to the stock's recent 11% drop. After taking the recent loss into consideration, the US$398.2k worth of stock they bought is now worth US$529.6k, indicating that their investment yielded a positive return.

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.

See our latest analysis for Imricor Medical Systems

Imricor Medical Systems Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Deputy Chairman & Lead Independent Director Mark Tibbles bought AU$195k worth of shares at a price of AU$0.34 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.45. 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.

While Imricor Medical Systems insiders bought shares during the last year, they didn't sell. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Imricor Medical Systems insiders own about AU$11m worth of shares (which is 14% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Imricor Medical Systems Tell Us?

It doesn't really mean much that no insider has traded Imricor Medical Systems shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Imricor Medical Systems and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Imricor Medical Systems is showing 5 warning signs in our investment analysis, and 3 of those are significant...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.