Addus HomeCare Corporation's (NASDAQ:ADUS) stock rose 4.1% last week, but insiders who sold US$678k worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$95.58, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Addus HomeCare Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the CFO, Executive VP, Brian Poff, for US$611k worth of shares, at about US$96.10 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$81.35. So it may not shed much light on insider confidence at current levels.
Addus HomeCare insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Does Addus HomeCare Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.1% of Addus HomeCare shares, worth about US$28m. 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 Addus HomeCare Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Addus HomeCare shares in the last quarter. Still, the insider transactions at Addus HomeCare in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. Of course, the future is what matters most. So if you are interested in Addus HomeCare, you should check out this free report on analyst forecasts for the company.
Of course Addus HomeCare may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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.