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Over the last year, a good number of insiders have significantly increased their holdings in Beyond Air, Inc. (NASDAQ:XAIR). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Beyond Air
Beyond Air Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Robert Carey for US$745k worth of shares, at about US$0.50 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.39). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Beyond Air insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Beyond Air is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Beyond Air
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Beyond Air insiders own 15% of the company, worth about US$4.3m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Beyond Air Tell Us?
It doesn't really mean much that no insider has traded Beyond Air shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Beyond Air and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Beyond Air. To help with this, we've discovered 5 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in Beyond Air.