Bullish AMN Healthcare Services Insiders Loaded Up On US$1.99m Of Stock

Over the last year, a good number of insiders have significantly increased their holdings in AMN Healthcare Services, Inc. (NYSE:AMN). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for AMN Healthcare Services

AMN Healthcare Services Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President Caroline Grace for US$992k worth of shares, at about US$57.06 per share. That means that even when the share price was higher than US$28.02 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While AMN Healthcare Services insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

AMN Healthcare Services is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that AMN Healthcare Services insiders own about US$7.7m worth of shares (which is 0.7% of the company). We do generally prefer see higher levels of insider ownership.

So What Do The AMN Healthcare Services Insider Transactions Indicate?

It doesn't really mean much that no insider has traded AMN Healthcare Services shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more AMN Healthcare Services stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AMN Healthcare Services. To that end, you should learn about the 4 warning signs we've spotted with AMN Healthcare Services (including 2 which can't be ignored).

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 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.