Even if it’s not a huge purchase, we think it was good to see that Philip Dubois, the Independent Non-Executive Director of EMvision Medical Devices Limited (ASX:EMV) recently shelled out AU$100k to buy stock, at AU$2.50 per share. Even though that isn’t a massive buy, it did increase their holding by 533%, which is arguably a good sign.
The Last 12 Months Of Insider Transactions At EMvision Medical Devices
Notably, that recent purchase by Philip Dubois is the biggest insider purchase of EMvision Medical Devices shares that we’ve seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$2.54. 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. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. Happily, the EMvision Medical Devices insider decided to buy shares at close to current prices. Philip Dubois was the only individual insider to buy during the last year.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
EMvision Medical Devices 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 of EMvision Medical Devices
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 24% of EMvision Medical Devices shares, worth about AU$43m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About EMvision Medical Devices Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest EMvision Medical Devices insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. For example – EMvision Medical Devices has 3 warning signs we think you should be aware of.
But note: EMvision Medical Devices 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. 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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