Insiders At American Aires See Good Returns After Buying Stock Worth CA$725.6k

American Aires Inc. (CSE:WIFI) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 10% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of CA$725.6k is now worth CA$1.88m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for American Aires

American Aires Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO & Director Josh Bruni for CA$442k worth of shares, at about CA$0.067 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.17. 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.

American Aires insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

American Aires is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

American Aires Insiders Bought Stock Recently

It's good to see that American Aires insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$726k worth of shares. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of American Aires

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 29% of American Aires shares, worth about CA$3.0m. 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 American Aires Insiders?

It's certainly positive to see the recent insider purchases. 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. When combined with notable insider ownership, these factors suggest American Aires insiders are well aligned, and that they may think the share price is too low. 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. In terms of investment risks, we've identified 6 warning signs with American Aires and understanding them should be part of your investment process.

But note: American Aires may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.