We’d be surprised if U.S. Physical Therapy, Inc. (NYSE:USPH) shareholders haven’t noticed that the Executive VP, Lawrance McAfee, recently sold US$407k worth of stock at US$91.41 per share. The eyebrow raising move amounted to a reduction of 19% in their holding.
U.S. Physical Therapy Insider Transactions Over The Last Year
The President, Christopher Reading, made the biggest insider sale in the last 12 months. That single transaction was for US$946k worth of shares at a price of US$135 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$89.29). So it may not tell us anything about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid US$686k for 6.90k shares. But they sold 32.84k shares for US$3.2m. Over the last year we saw more insider selling of U.S. Physical Therapy shares, than buying. They sold for an average price of about US$96.79. We don’t gain confidence from insider selling near the recent share price. But we don’t put too much weight on the insider selling, since sellers could have personal reasons. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 2.0% of U.S. Physical Therapy shares, worth about US$23m. 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 U.S. Physical Therapy Insider Transactions Indicate?
Insiders haven’t bought U.S. Physical Therapy stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn’t give us much comfort. On the plus side, U.S. Physical Therapy makes money, and is growing profits. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’re in no rush to buy! 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. To assist with this, we’ve discovered 2 warning signs that you should run your eye over to get a better picture of U.S. Physical Therapy.
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, but not derivative transactions.
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