It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Cross Country Healthcare, Inc. (NASDAQ:CCRN).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
The Last 12 Months Of Insider Transactions At Cross Country Healthcare
Chairman of the Board Thomas Dircks made the biggest insider purchase in the last 12 months. That single transaction was for US$118k worth of shares at a price of US$11.77 each. That means that an insider was happy to buy shares at above the current price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We generally consider it a positive if insiders have been buying on market, even above the current price.
In the last twelve months insiders purchased 70.09k shares for US$717k. But insiders sold 10.00k shares worth US$115k. Overall, Cross Country Healthcare insiders were net buyers last year. Their average price was about US$10.23. These transactions suggest that insiders have considered the current price of US$8.03 attractive. You can see the insider transactions 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!
Cross Country Healthcare is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Are Cross Country Healthcare Insiders Buying Or Selling?
Buffy White bought just US$2.1k worth of shares in that time. That’s not much at all. Overall, we don’t think these recent trades are particularly informative, one way or the other.
Does Cross Country Healthcare Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Cross Country Healthcare insiders own 4.4% of the company, currently worth about US$13m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Cross Country Healthcare Insiders?
We note a that there has been a tad more insider buying than selling, recently. But the net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Overall we don’t see anything to make us think Cross Country Healthcare insiders are doubting the company, and they do own shares. Of course, the future is what matters most. So if you are interested in Cross Country Healthcare, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.