Investors who take an interest in Beyond Air, Inc. (NASDAQ:XAIR) should definitely note that the CEO & Chairman of the Board, Steven Lisi, recently paid US$5.28 per share to buy US$203k worth of the stock. Although the purchase only increased their holding by 4.3%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Beyond Air
The insider Robert Carey made the biggest insider purchase in the last 12 months. That single transaction was for US$338k worth of shares at a price of US$5.65 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$5.27). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Beyond Air insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. 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.
Does Beyond Air Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 22% of Beyond Air shares, worth about US$21m. 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 Does This Data Suggest About Beyond Air Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Beyond Air insiders are well aligned, and that they may think the share price is too low. 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. Be aware that Beyond Air is showing 3 warning signs in our investment analysis, and 1 of those is a bit concerning...
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, but not derivative transactions.
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