Despite Hitting CA$0.68, Healwell AI Insiders Still Sold Too Soon

Despite the fact that Healwell AI Inc.'s (TSE:AIDX) value has dropped 11% in the last week insiders who sold CA$638k worth of stock in the past 12 months have had less success. The average selling price of CA$1.39 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

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.

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The Last 12 Months Of Insider Transactions At Healwell AI

In the last twelve months, the biggest single sale by an insider was when the Founder, Alexander Dobranowski, sold CA$198k worth of shares at a price of CA$1.43 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (CA$0.68). So it may not shed much light on insider confidence at current levels. Notably Alexander Dobranowski was also the biggest buyer, having purchased CA$5.4k worth of shares.

Over the last year we saw more insider selling of Healwell AI shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Healwell AI

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Does Healwell AI Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 13% of Healwell AI shares, worth about CA$27m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Healwell AI Insiders?

It doesn't really mean much that no insider has traded Healwell AI shares in the last quarter. We don't take much encouragement from the transactions by Healwell AI insiders. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Healwell AI.

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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.