Insider Buyers Lose UK£20k As Advanced Medical Solutions Group Sheds UK£157m
The recent price decline of 29% in Advanced Medical Solutions Group plc's (LON:AMS) stock may have disappointed insiders who bought UK£99k worth of shares at an average price of UK£2.26 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth UK£79k, which is not what they expected.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Advanced Medical Solutions Group
Advanced Medical Solutions Group Insider Transactions Over The Last Year
The CEO & Executive Director Andrew Meredith made the biggest insider purchase in the last 12 months. That single transaction was for UK£99k worth of shares at a price of UK£2.26 each. That means that even when the share price was higher than UK£1.80 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Andrew Meredith was the only individual insider to buy shares in the last twelve months. We note that Andrew Meredith was both the biggest buyer and the biggest seller.
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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Advanced Medical Solutions Group Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own UK£3.5m worth of Advanced Medical Solutions Group stock, about 0.9% of the company. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Advanced Medical Solutions Group Tell Us?
The fact that there have been no Advanced Medical Solutions Group insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Advanced Medical Solutions Group stock. 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 Advanced Medical Solutions Group.
But note: Advanced Medical Solutions Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
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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.
