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.

But note: Beyond Air 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.