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Co-Founder Anthony Abrahams Just Bought 8.8% More Shares In Ai-Media Technologies Limited (ASX:AIM)

Those following along with Ai-Media Technologies Limited (ASX:AIM) will no doubt be intrigued by the recent purchase of shares by Anthony Abrahams, Co-Founder of the company, who spent a stonking AU$870k on stock at an average price of AU$0.35. While that only increased their holding size by 8.8%, it is still a big swing by our standards.

Check out our latest analysis for Ai-Media Technologies

The Last 12 Months Of Insider Transactions At Ai-Media Technologies

In fact, the recent purchase by Anthony Abrahams was the biggest purchase of Ai-Media Technologies shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of AU$0.36. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices. We note that Anthony Abrahams was also the biggest seller.

In the last twelve months insiders purchased 3.05m shares for AU$1.1m. But insiders sold 550.00k shares worth AU$195k. In total, Ai-Media Technologies insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Ai-Media Technologies is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. 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$23m worth of shares. That equates to 31% of the company. 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 Do The Ai-Media Technologies Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Ai-Media Technologies we think they are probably pretty confident of a bright future. 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. In terms of investment risks, we've identified 1 warning sign with Ai-Media Technologies and understanding this should be part of your investment process.

Of course Ai-Media Technologies may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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