Over the last year, a good number of insiders have significantly increased their holdings in Ai-Media Technologies Limited (ASX:AIM). 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.

Check out our latest analysis for Ai-Media Technologies

Ai-Media Technologies Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Co-Founder Anthony Abrahams for AU$1.6m worth of shares, at about AU$0.31 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.77. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 10.18m shares worth AU$3.2m. On the other hand they divested 2.50m shares, for AU$1.0m. In total, Ai-Media Technologies insiders bought more than they sold over the last year. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Ai-Media Technologies Insiders Are Selling The Stock

The last three months saw significant insider selling at Ai-Media Technologies. Specifically, insider Deanne Weir ditched AU$1.0m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Ai-Media Technologies Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Ai-Media Technologies insiders own 29% of the company, worth about AU$47m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Ai-Media Technologies Tell Us?

An insider sold Ai-Media Technologies shares recently, but they didn't buy any. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ai-Media Technologies. You'd be interested to know, that we found 1 warning sign for Ai-Media Technologies and we suggest you have a look.

But note: Ai-Media Technologies 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 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.