NextGen Healthcare, Inc.'s stock is down 4.3%, but insiders still have about US$65k in profit after buying earlier this year

Simply Wall St
April 23, 2022
Source: Shutterstock

Insiders who bought NextGen Healthcare, Inc. (NASDAQ:NXGN) stock lover the last 12 months are probably not as affected by last week’s 4.3% loss. Even after accounting for the recent loss, the US$228k worth of stock purchased by them is now worth US$293k or in other words, their investment continues to give good returns.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for NextGen Healthcare

The Last 12 Months Of Insider Transactions At NextGen Healthcare

Over the last year, we can see that the biggest insider purchase was by CEO, President & Director David Sides for US$101k worth of shares, at about US$15.62 per share. Even though the purchase was made at a significantly lower price than the recent price (US$20.20), 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.

In the last twelve months NextGen Healthcare insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:NXGN Insider Trading Volume April 23rd 2022

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).

Insider Ownership of NextGen Healthcare

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that NextGen Healthcare insiders own 20% of the company, worth about US$266m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At NextGen Healthcare Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like NextGen Healthcare insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for NextGen Healthcare that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.