Insider Spends US$2.1m Buying More Shares In Perimeter Medical Imaging AI
Those following along with Perimeter Medical Imaging AI, Inc. (CVE:PINK) will no doubt be intrigued by the recent purchase of shares by Adrian Mendes, CEO & Director of the company, who spent a stonking CA$2.1m on stock at an average price of CA$0.18. That purchase boosted their holding by 315%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
The Last 12 Months Of Insider Transactions At Perimeter Medical Imaging AI
Notably, that recent purchase by Adrian Mendes is the biggest insider purchase of Perimeter Medical Imaging AI shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (CA$0.26), we still think insider buying is a positive. 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.
In the last twelve months Perimeter Medical Imaging AI insiders were buying shares, but not selling. They paid about CA$0.20 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Perimeter Medical Imaging AI
Perimeter Medical Imaging AI is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Insiders own 22% of Perimeter Medical Imaging AI shares, worth about CA$7.6m. 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 Perimeter Medical Imaging AI Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Perimeter Medical Imaging AI we think they are probably pretty confident of a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Perimeter Medical Imaging AI has 3 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.
But note: Perimeter Medical Imaging AI 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.