We'd be surprised if Computer Programs and Systems, Inc. (NASDAQ:CPSI) shareholders haven't noticed that the CFO, Secretary & Treasurer, Matt Chambless, recently sold US$334k worth of stock at US$29.50 per share. The eyebrow raising move amounted to a reduction of 29% in their holding.
The Last 12 Months Of Insider Transactions At Computer Programs and Systems
Notably, that recent sale by CFO, Secretary & Treasurer Matt Chambless was not the only time they sold Computer Programs and Systems shares this year. Earlier in the year, they fetched US$28.34 per share in a -US$368k sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$29.66. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 25% of Matt Chambless's holding.
In the last year Computer Programs and Systems 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!
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Does Computer Programs and Systems Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 5.2% of Computer Programs and Systems shares, worth about US$22m. 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 Does This Data Suggest About Computer Programs and Systems Insiders?
Insiders sold Computer Programs and Systems shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Computer Programs and Systems is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for Computer Programs and Systems and we suggest you have a look.
Of course Computer Programs and Systems 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.
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