Insiders made the right call by buying AU$1m Advanced Health Intelligence Ltd. (ASX:AHI) stock this year, currently sit on AU$360k profit
Advanced Health Intelligence Ltd. (ASX:AHI) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 11% decline in the stock price. Even after accounting for the recent loss, the AU$1m worth of stock purchased by them is now worth AU$1.4m or in other words, their investment continues to give good returns.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Advanced Health Intelligence
Advanced Health Intelligence Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Co-Founder & Executive Director Katherine Iscoe for AU$1m worth of shares, at about AU$0.059 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.08), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Advanced Health Intelligence is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Advanced Health Intelligence insiders own 42% of the company, currently worth about AU$6.6m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Advanced Health Intelligence Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Advanced Health Intelligence insiders think the business has merit. 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 instance, we've identified 5 warning signs for Advanced Health Intelligence (2 don't sit too well with us) you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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Advanced Health Intelligence
Advanced Health Intelligence Ltd. operates as a mobile application and technology development company in Australia and internationally.
Imperfect balance sheet with weak fundamentals.