Ainos' Stock Sinks To US$0.96, But Insiders Sold Even Lower

Despite the fact that Ainos, Inc.'s (NASDAQ:AIMD) value has dropped 22% in the last week insiders who sold US$291k worth of stock in the past 12 months have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$1.85 is still lower than the current share price.

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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Ainos Insider Transactions Over The Last Year

The Director, Ting-Chuan Lee, made the biggest insider sale in the last 12 months. That single transaction was for US$209k worth of shares at a price of US$1.90 each. 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 (US$0.96). So it is hard to draw any strong conclusion from it.

In total, Ainos insiders sold more than they bought over the last year. 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!

View our latest analysis for Ainos

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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. It appears that Ainos insiders own 32% of the company, worth about US$2.6m. 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 Do The Ainos Insider Transactions Indicate?

The fact that there have been no Ainos insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Ainos insiders. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ainos. To assist with this, we've discovered 5 warning signs that you should run your eye over to get a better picture of Ainos.

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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.