With AI/ML Innovations Up 18%, Insider Buyers Count Their Returns

Insiders who bought AI/ML Innovations Inc. (CSE:AIML) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$1.5m as a result of the stock's 18% gain over the same period. In other words, the original CA$408.2k purchase is now worth CA$528.5k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for AI/ML Innovations

The Last 12 Months Of Insider Transactions At AI/ML Innovations

The insider Theresa Slater made the biggest insider purchase in the last 12 months. That single transaction was for CA$261k worth of shares at a price of CA$0.05 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.065. 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.

In the last twelve months insiders purchased 8.13m shares for CA$408k. On the other hand they divested 1.00m shares, for CA$65k. In total, AI/ML Innovations insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

AI/ML Innovations is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At AI/ML Innovations Have Bought Stock Recently

We saw some AI/ML Innovations insider buying shares in the last three months. insider Sheldon Inwentash shelled out CA$28k for shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does AI/ML Innovations Boast High Insider Ownership?

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. Insiders own 22% of AI/ML Innovations shares, worth about CA$1.6m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At AI/ML Innovations Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in AI/ML Innovations and their transactions don't cause us concern. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 5 warning signs for AI/ML Innovations that deserve your attention before buying any shares.

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.