Don't Ignore The Fact That This Insider Just Sold Some Shares In U.S. Physical Therapy, Inc. (NYSE:USPH)

By
Simply Wall St
Published
August 17, 2020
NYSE:USPH

We'd be surprised if U.S. Physical Therapy, Inc. (NYSE:USPH) shareholders haven't noticed that the Executive VP, Lawrance McAfee, recently sold US$407k worth of stock at US$91.41 per share. The eyebrow raising move amounted to a reduction of 19% in their holding.

See our latest analysis for U.S. Physical Therapy

U.S. Physical Therapy Insider Transactions Over The Last Year

The President, Christopher Reading, made the biggest insider sale in the last 12 months. That single transaction was for US$946k worth of shares at a price of US$135 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$89.29). So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$686k for 6.90k shares. But they sold 32.84k shares for US$3.2m. Over the last year we saw more insider selling of U.S. Physical Therapy shares, than buying. They sold for an average price of about US$96.79. We don't gain confidence from insider selling near the recent share price. But we don't put too much weight on the insider selling, since sellers could have personal reasons. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:USPH Insider Trading Volume August 17th 2020

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.0% of U.S. Physical Therapy shares, worth about US$23m. 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 Do The U.S. Physical Therapy Insider Transactions Indicate?

Insiders haven't bought U.S. Physical Therapy stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, U.S. Physical Therapy makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of U.S. Physical Therapy.

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.

Promoted
If you’re looking to trade U.S. Physical Therapy, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.


This article by Simply Wall St is general in nature. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


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

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.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of equity analysts with a public, market-beating track record. Learn more about the team behind Simply Wall St.