This Insider Has Just Sold Shares In AdaptHealth

We'd be surprised if AdaptHealth Corp. (NASDAQ:AHCO) shareholders haven't noticed that the Chief Financial Officer, Jason Clemens, recently sold US$327k worth of stock at US$9.35 per share. On the bright side, that sale was only 7.7% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for AdaptHealth

AdaptHealth Insider Transactions Over The Last Year

Notably, that recent sale by Jason Clemens is the biggest insider sale of AdaptHealth shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$9.55). 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. It is worth noting that this sale was only 7.7% of Jason Clemens's holding.

Insiders in AdaptHealth didn't buy any shares in the last year. 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!

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. AdaptHealth insiders own 11% of the company, currently worth about US$135m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The AdaptHealth Insider Transactions Indicate?

Insiders haven't bought AdaptHealth stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AdaptHealth. In terms of investment risks, we've identified 1 warning sign with AdaptHealth and understanding this should be part of your investment process.

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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.