Insiders Re-Evaluate Their US$3.86m Stock Purchase As Beyond Air Falls To US$58m

Insiders who acquired US$3.86m worth of Beyond Air, Inc.'s (NASDAQ:XAIR) stock at an average price of US$2.19 in the past 12 months may be dismayed by the recent 13% 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$3.19m which is not ideal.

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.

Check out our latest analysis for Beyond Air

The Last 12 Months Of Insider Transactions At Beyond Air

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, at around the current price, which is US$1.81. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Beyond Air insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 1.76m shares for US$3.9m. On the other hand they divested 63.29k shares, for US$327k. In total, Beyond Air insiders bought more than they sold over the last year. They paid about US$2.19 on average. 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. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insiders At Beyond Air Have Bought Stock Recently

At Beyond Air,over the last quarter, we have observed quite a lot more insider buying than insider selling. Insiders spent US$2.1m on shares. But we did see insider selling worth US$31k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership Of Beyond Air

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 21% of Beyond Air shares, worth about US$12m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Beyond Air Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Beyond Air we think they are probably pretty confident of a bright 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. When we did our research, we found 6 warning signs for Beyond Air (2 shouldn't be ignored!) that we believe deserve your full attention.

Of course Beyond Air 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 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.