Ayr Wellness Insiders Recover Some Losses, Which Stand At US$90k

Insiders who bought US$407.8k worth of Ayr Wellness Inc. (CSE:AYR.A) stock in the last year have seen some of their losses recouped as the stock gained 14% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$90k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Ayr Wellness

Ayr Wellness Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President & CEO David Goubert for CA$172k worth of shares, at about CA$1.75 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$1.68). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid CA$408k for 188.90k shares. But they sold 39.00 shares for CA$130. In total, Ayr Wellness insiders bought more than they sold over the last year. They paid about CA$2.16 on average. These transactions suggest that insiders have considered the current price attractive. 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!

Ayr Wellness 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.

Insider Ownership Of Ayr Wellness

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. From our data, it seems that Ayr Wellness insiders own 8.2% of the company, worth about CA$11m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Ayr Wellness Insiders?

It doesn't really mean much that no insider has traded Ayr Wellness shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Ayr Wellness insiders are doubting the company, and they do own shares. 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. At Simply Wall St, we've found that Ayr Wellness has 4 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

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 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.