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Alset EHome International Inc. ( NASDAQ:AEI ) shareholders (or potential shareholders) will be happy to see that the Founder, Heng Fai Chan, recently bought a whopping US$3.96m worth of stock, at prices between $0.5 to $0.76. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 22.3%.
Check out our latest analysis for Alset EHome International
The Last 12 Months Of Insider Transactions At Alset EHome International
In fact, the recent purchase by Founder Heng Fai Chan was not their only acquisition of Alset EHome International shares this year. Earlier in the year, they paid US$0.60 per share in a US$4.4m purchase. We do like to see buying, but this purchase was made at well below the current price of US$0.74. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Heng Fai Chan bought 11.96m shares over the last 12 months at an average price of US$0.77. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Alset EHome International is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Alset EHome International insiders own 36% of the company, worth about US$30m. 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 Do The Alset EHome International Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Alset EHome International we think they are probably pretty confident of a bright future. While we like knowing 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. For instance, we've identified 4 warning signs for Alset EHome International (2 are a bit unpleasant) you should be aware of.