Beyond Air Up 15%, Insiders Still Down After US$1.60m Purchase

Insiders who bought US$1.60m worth of Beyond Air, Inc. (NASDAQ:XAIR) stock in the last year recovered part of their losses as the stock rose by 15% last week. However, total losses seen by insiders are still US$248k since the time of purchase.

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.

See our latest analysis for Beyond Air

Beyond Air Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Robert Carey for US$745k worth of shares, at about US$0.50 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.42). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Beyond Air insiders were buying shares, but not selling. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Beyond Air

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 15% of Beyond Air shares, worth about US$4.6m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Beyond Air Tell Us?

It doesn't really mean much that no insider has traded Beyond Air shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Beyond Air and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 5 warning signs for Beyond Air (1 can't be ignored!) that we believe deserve your full attention.

But note: Beyond Air 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.