Ainos, Inc. (NASDAQ:AIMD) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 423% resulting in a US$427m addition to the company's market value. As a result, the stock they originally bought for US$1.5m is now worth US$17m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Ainos

The Last 12 Months Of Insider Transactions At Ainos

The Independent Director Wen-Han Chang made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$0.25 each. We do like to see buying, but this purchase was made at well below the current price of US$3.66. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Ainos insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$0.33. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Ainos 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 Ainos

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. Ainos insiders own about US$65m worth of shares. That equates to 12% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Ainos Insiders?

It doesn't really mean much that no insider has traded Ainos shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Ainos and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 3 warning signs for Ainos you should be aware of.

But note: Ainos 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. 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.