Don't Ignore The Insider Selling In TruBridge

Anyone interested in TruBridge, Inc. (NASDAQ:TBRG) should probably be aware that the CEO, President & Director, Christopher Fowler, recently divested US$138k worth of shares in the company, at an average price of US$27.02 each. However, the silver lining is that the sale only reduced their total holding by 3.4%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for TruBridge

TruBridge Insider Transactions Over The Last Year

In fact, the recent sale by Christopher Fowler was the biggest sale of TruBridge shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$27.96). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 3.4% of Christopher Fowler's stake.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 5.1% of TruBridge shares, worth about US$21m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At TruBridge Tell Us?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, TruBridge has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

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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.