The Non-Executive Chairman of the Board of MedAdvisor Limited (ASX:MDR), Christopher Ridd, Just Bought A Few More Shares

Even if it's not a huge purchase, we think it was good to see that Christopher Ridd, the Non-Executive Chairman of the Board of MedAdvisor Limited (ASX:MDR) recently shelled out AU$70k to buy stock, at AU$0.38 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for MedAdvisor

MedAdvisor Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Founder, Joshua Swinnerton, for AU$3.3m worth of shares, at about AU$0.33 per share. That means that an insider was selling shares at slightly below the current price (AU$0.38). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 40% of Joshua Swinnerton's holding. Joshua Swinnerton was the only individual insider to sell over the last year.

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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 13% of MedAdvisor shares, worth about AU$18m. 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 Does This Data Suggest About MedAdvisor Insiders?

The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn't so positive. While recent transactions indicate confidence in MedAdvisor, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. So they seem pretty well aligned, overall. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for MedAdvisor you should be aware of, and 1 of these can't be ignored.

Of course MedAdvisor 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.

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