Aeris Environmental Slides As Insider Purchases Lose Another AU$124k

Simply Wall St · 04/15 23:40

Insiders who bought AU$284.2k worth of Aeris Environmental Ltd's (ASX:AEI) stock at an average buy price of AU$0.084 over the last year may be disappointed by the recent 11% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth AU$159.8k, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Aeris Environmental

In the last twelve months, the biggest single purchase by an insider was when insider Bernard Stang bought AU$284k worth of shares at a price of AU$0.084 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.047). 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Bernard Stang.

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!

View our latest analysis for Aeris Environmental

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ASX:AEI Insider Trading Volume April 15th 2025

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.

Does Aeris Environmental Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 29% of Aeris Environmental shares, worth about AU$3.3m. 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 Aeris Environmental Tell Us?

It is good to see the recent insider purchase. 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. When combined with notable insider ownership, these factors suggest Aeris Environmental insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aeris Environmental. Every company has risks, and we've spotted 5 warning signs for Aeris Environmental (of which 4 are potentially serious!) you should know about.

Of course Aeris Environmental may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.