Don't Ignore The Insider Selling In Advanced Medical Solutions Group

Anyone interested in Advanced Medical Solutions Group plc (LON:AMS) should probably be aware that the CEO & Executive Director, Andrew Meredith, recently divested UK£110k worth of shares in the company, at an average price of UK£2.19 each. On the bright side, that sale was only 2.4% of their holding, so we doubt it's very meaningful, on its own.

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Advanced Medical Solutions Group Insider Transactions Over The Last Year

Notably, that recent sale by CEO & Executive Director Andrew Meredith was not the only time they sold Advanced Medical Solutions Group shares this year. They previously made an even bigger sale of -UK£410k worth of shares at a price of UK£1.94 per share. That means that even when the share price was below the current price of UK£2.17, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 9.4% of Andrew Meredith's holding.

Over the last year, we can see that insiders have bought 78.11k shares worth UK£158k. But they sold 377.24k shares for UK£745k. All up, insiders sold more shares in Advanced Medical Solutions Group than they bought, 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Advanced Medical Solutions Group

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Insider Ownership

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. We usually like to see fairly high levels of insider ownership. Insiders own 1.1% of Advanced Medical Solutions Group shares, worth about UK£5.2m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Advanced Medical Solutions Group Insider Transactions Indicate?

The stark truth for Advanced Medical Solutions Group is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We'd certainly practice some caution before buying! 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. Every company has risks, and we've spotted 2 warning signs for Advanced Medical Solutions Group you should know about.

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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.