Potential Ai-Media Technologies Limited (ASX:AIM) shareholders should note that Co-Founder Anthony Abrahams recently bought AU$200,000 worth of shares, paying him AU$0.80 per share. Please. Although this purchase is not large, it can be considered a good sign from a percentage or absolute value perspective.
Check out our latest analysis for Ai-Media Technologies.
Ai-Media Technologies insider transactions over the past year
Notably, co-founder Anthony Abrahams’ recent acquisition isn’t the only time the company has purchased Ai-Media Technologies stock this year. Earlier this year, the company paid A$0.31 per share for the A$1.6 million acquisition. We like to see insider buying, and we note that this large purchase is well below the recent price of AU$0.84. This occurred at a lower valuation, so it doesn’t tell us much about whether insiders find today’s price attractive.
Anthony Abrahams bought a total of 10.25 million shares during the year at an average price of AU$0.32. The chart below depicts insider transactions (by companies and individuals) over the past year. Click on the chart to see all individual trades, including stock price, individual, and date.
There are plenty of other companies where insiders are buying up shares. Perhaps you don’t want to miss this free list of undervalued small-cap stocks that insiders are buying.
Insider ownership
If you are a common shareholder, it may be worth checking how many shares are held by company insiders. We think it’s a good sign if insiders own a significant number of shares in the company. Ai-Media Technologies insiders own approximately AU$51m worth of shares. This represents 29% of the company. This level of insider ownership is good, but far from particularly noticeable. That certainly suggests a reasonable degree of consistency.
So what do Ai-Media Technologies’ insider transactions tell us?
Recent insider buying is certainly positive. Also, long-term insider trading gives us confidence. However, we’re cautious, noting that the company hasn’t made a profit in the last twelve months. Combined with the high-profile insider ownership, these factors suggest that Ai-Media Technologies insiders are well aligned and may believe the stock price is too low. If you’re like me, you might want to consider whether this company will grow or shrink. Luckily you can check this free report showing analyst forecasts for its future.
If you would prefer to check out another company – one with potentially superior financials – then do not miss this free list of interesting companies with a high return on equity and low debt.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. The Company currently only accounts for open market transactions and private dispositions of direct profits, and does not account for derivative transactions or indirect profits.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
