Selling AU$2.7m Of Stock Was Lucrative Decision For Ai-Media Technologies Insiders

Despite a 12% gain in Ai-Media Technologies Limited's (ASX:AIM) stock price this week, shareholders shouldn't let up. Even though stock prices were relatively low, insiders elected to sell AU$2.7m worth of stock in the last year, which could indicate some expected downturn.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Ai-Media Technologies Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Deanne Weir, sold AU$1.8m worth of shares at a price of AU$0.83 per share. So what is clear is that an insider saw fit to sell at around the current price of AU$0.81. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Deanne Weir was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 1.11m shares worth AU$597k. On the other hand they divested 4.15m shares, for AU$2.7m. Deanne Weir divested 4.15m shares over the last 12 months at an average price of AU$0.66. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Ai-Media Technologies

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Ai-Media Technologies Insiders Bought Stock Recently

There was some insider buying at Ai-Media Technologies over the last quarter. Independent Non-Executive Director Brad Bender purchased AU$38k worth of shares in that period. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does Ai-Media Technologies 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Ai-Media Technologies insiders own about AU$50m worth of shares. That equates to 29% of the company. 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 Do The Ai-Media Technologies Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. Still, the insider transactions at Ai-Media Technologies in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. Of course, the future is what matters most. So if you are interested in Ai-Media Technologies, you should check out this free report on analyst forecasts for the company.

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.