Viewing insider transactions for AdaptHealth Corp.'s (NASDAQ:AHCO ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for AdaptHealth
AdaptHealth Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Wayne Quasha, sold US$51m worth of shares at a price of US$13.98 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$8.45). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Wayne Quasha. Notably Wayne Quasha was also the biggest buyer, having purchased US$5.0m worth of shares.
Over the last year, we can see that insiders have bought 222.52k shares worth US$5.0m. But they sold 4.33m shares for US$64m. Wayne Quasha ditched 4.33m shares over the year. The average price per share was US$14.84. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does AdaptHealth 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. I reckon it's a good sign if insiders own a significant number of shares in the company. AdaptHealth insiders own 14% of the company, currently worth about US$148m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About AdaptHealth Insiders?
It doesn't really mean much that no insider has traded AdaptHealth shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the AdaptHealth insiders selling. 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 1 warning sign for AdaptHealth you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.