Bullish Beyond Air Insider Buying Worth US$3.05m Yet To Pay Off

Insiders who acquired US$3.05m worth of Beyond Air, Inc.'s (NASDAQ:XAIR) stock at an average price of US$1.87 in the past 12 months may be dismayed by the recent 12% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$1.75m which is not ideal.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Beyond Air

Beyond Air Insider Transactions Over The Last Year

The Independent Director Robert Carey made the biggest insider purchase in the last 12 months. That single transaction was for US$2.0m worth of shares at a price of US$1.64 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.07). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

Happily, we note that in the last year insiders paid US$3.0m for 1.63m shares. On the other hand they divested 14.69k shares, for US$31k. Overall, Beyond Air insiders were net buyers during the last year. Their average price was about US$1.87. This is nice to see since it implies that insiders might see value around current prices. 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!

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

Insider Ownership Of Beyond Air

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Beyond Air insiders own about US$9.5m worth of shares. That equates to 18% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Beyond Air Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Beyond Air shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Beyond Air and we see no evidence to suggest they are worried about the future. While we like knowing 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. To that end, you should learn about the 6 warning signs we've spotted with Beyond Air (including 3 which are a bit unpleasant).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.