TruBridge Gains 11%, Insider Trades Reap Benefit

Insiders who bought TruBridge, Inc. (NASDAQ:TBRG) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$16m as a result of the stock's 11% gain over the same period. In other words, the original US$84.4k purchase is now worth US$117.5k.

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.

See our latest analysis for TruBridge

TruBridge Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Chairperson of the Board Glenn Tobin bought US$84k worth of shares at a price of US$8.04 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$11.19. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does TruBridge Boast High 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. Our data indicates that TruBridge insiders own about US$6.6m worth of shares (which is 4.1% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The TruBridge Insider Transactions Indicate?

It doesn't really mean much that no insider has traded TruBridge shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think TruBridge insiders are doubting the company. 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. In terms of investment risks, we've identified 1 warning sign with TruBridge and understanding it should be part of your investment process.

Of course TruBridge 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com