Insiders' US$4.49m Investments In Red Following Perimeter Medical Imaging AI's CA$2.8m Dip In Market Value

The recent price decline of 10% in Perimeter Medical Imaging AI, Inc.'s (CVE:PINK) stock may have disappointed insiders who bought US$4.49m worth of shares at an average price of US$0.38 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$2.58m, which is not what they expected.

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.

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Perimeter Medical Imaging AI Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Rocco Schiralli for CA$3.4m worth of shares, at about CA$0.42 per share. That means that an insider was happy to buy shares at above the current price of CA$0.22. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Perimeter Medical Imaging AI insiders may have bought shares in the last year, but they didn't sell any. 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!

View our latest analysis for Perimeter Medical Imaging AI

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Insiders At Perimeter Medical Imaging AI Have Bought Stock Recently

It's good to see that Perimeter Medical Imaging AI insiders have made notable investments in the company's shares. We can see that CEO & Director Adrian Mendes paid CA$1.0m for shares in the company. No-one sold. That shows some optimism about the company's future.

Insider Ownership Of Perimeter Medical Imaging AI

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data indicates that Perimeter Medical Imaging AI insiders own about CA$3.8m worth of shares (which is 15% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Perimeter Medical Imaging AI Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Perimeter Medical Imaging AI stock. 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. For example, Perimeter Medical Imaging AI has 5 warning signs (and 2 which are concerning) we think you should know about.

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.