How Much Are Aspira Women's Health Inc. (NASDAQ:AWH) Insiders Spending On Buying Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Aspira Women's Health Inc. (NASDAQ:AWH).

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

Check out our latest analysis for Aspira Women's Health

Aspira Women's Health Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Jack Schuler bought US$8.0m worth of shares at a price of US$3.50 per share. Even though the purchase was made at a significantly lower price than the recent price (US$7.80), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 2.98m shares worth US$13m. On the other hand they divested 50.00k shares, for US$139k. In total, Aspira Women's Health insiders bought more than they sold over the last year. The average buy price was around US$4.22. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

Aspira Women's Health is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders at Aspira Women's Health Have Bought Stock Recently

Over the last quarter, Aspira Women's Health insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$4.0m for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Does Aspira Women's Health Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Aspira Women's Health insiders own 39% of the company, currently worth about US$340m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Aspira Women's Health Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. 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 Aspira Women's Health insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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 instance, we've identified 5 warning signs for Aspira Women's Health (1 is concerning) you should be aware of.

Of course Aspira Women's Health may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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