We wouldn't blame AdaptHealth Corp. (NASDAQ:AHCO) shareholders if they were a little worried about the fact that Wayne Quasha, a company insider, recently netted about US$4.0m selling shares at an average price of US$20.00. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.4%.
See our latest analysis for AdaptHealth
The Last 12 Months Of Insider Transactions At AdaptHealth
Notably, that recent sale by insider Wayne Quasha was not the only time they sold AdaptHealth shares this year. They previously made an even bigger sale of -US$18m worth of shares at a price of US$21.50 per share. That means that even when the share price was slightly below the current price of US$21.72, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 5.8% of Wayne Quasha's stake.
Happily, we note that in the last year insiders paid US$524k for 33.93k shares. On the other hand they divested 2.30m shares, for US$49m. All up, insiders sold more shares in AdaptHealth than they bought, over the last year. 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!
I will like AdaptHealth better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership Of AdaptHealth
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. AdaptHealth insiders own 18% of the company, currently worth about US$525m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About AdaptHealth Insiders?
Insiders sold AdaptHealth shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since AdaptHealth is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. Every company has risks, and we've spotted 3 warning signs for AdaptHealth (of which 1 is a bit concerning!) you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, 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.