Bullish BrightSpring Health Services Insiders Loaded Up On US$876.9k Of Stock

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in BrightSpring Health Services, Inc.'s (NASDAQ:BTSG) case, it's fantastic news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for BrightSpring Health Services

BrightSpring Health Services Insider Transactions Over The Last Year

The Chairman Jon Rousseau made the biggest insider purchase in the last 12 months. That single transaction was for US$304k worth of shares at a price of US$8.12 each. Even though the purchase was made at a significantly lower price than the recent price (US$10.91), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

BrightSpring Health Services insiders may have bought shares in the last year, but they didn't sell any. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At BrightSpring Health Services Have Bought Stock Recently

It's good to see that BrightSpring Health Services insiders have made notable investments in the company's shares. Overall, four insiders shelled out US$877k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that BrightSpring Health Services insiders own 1.1% of the company, worth about US$19m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At BrightSpring Health Services Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in BrightSpring Health Services shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in BrightSpring Health Services, you should check out this free report on analyst forecasts for the company.

Of course BrightSpring Health Services 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 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.