Stock Analysis
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- NasdaqGS:ADUS
Have Insiders Sold Addus HomeCare Corporation (NASDAQ:ADUS) Shares Recently?
We note that the Addus HomeCare Corporation (NASDAQ:ADUS) Executive VP & Chief Information Officer, Michael Wattenbarger, recently sold US$77k worth of stock for US$98.77 per share. It might not be a huge sale, but it did reduce their holding size 10%, hardly encouraging.
View our latest analysis for Addus HomeCare
Addus HomeCare Insider Transactions Over The Last Year
The CEO & Chairman of the Board, R. Allison, made the biggest insider sale in the last 12 months. That single transaction was for US$1.4m worth of shares at a price of US$110 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$98.54. So it may not tell us anything about how insiders feel about the current share price.
In the last year Addus HomeCare insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Addus HomeCare 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
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Addus HomeCare insiders own about US$29m worth of shares. That equates to 1.9% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Addus HomeCare Insider Transactions Indicate?
An insider sold Addus HomeCare shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Addus HomeCare makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. For example - Addus HomeCare has 1 warning sign we think you should be aware of.
But note: Addus HomeCare 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.
What are the risks and opportunities for Addus HomeCare?
Addus HomeCare Corporation, together with its subsidiaries, provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the United States.
Rewards
Earnings are forecast to grow 15.75% per year
Earnings grew by 2% over the past year
Risks
Significant insider selling over the past 3 months
Further research on
Addus HomeCare
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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.
About NasdaqGS:ADUS
Addus HomeCare
Addus HomeCare Corporation, together with its subsidiaries, provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the United States.
Flawless balance sheet with acceptable track record.
