Have Insiders Sold U.S. Physical Therapy, Inc. (NYSE:USPH) Shares Recently?

Some U.S. Physical Therapy, Inc. (NYSE:USPH) shareholders may be a little concerned to see that insider Lawrance McAfee recently sold a substantial US$596k worth of stock at a price of US$119 per share. That sale reduced their total holding by 30% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for U.S. Physical Therapy

The Last 12 Months Of Insider Transactions At U.S. Physical Therapy

The Chief Operating Officer of West, Glenn McDowell, made the biggest insider sale in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$106 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$114. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 44% of Glenn McDowell's holding.

Over the last year we saw more insider selling of U.S. Physical Therapy shares, than buying. The average sell price was around US$98.39. It's not too encouraging to see that insiders have sold at below the current price. Since insiders sell for many reasons, we wouldn't put too much weight on it. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of U.S. Physical Therapy

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that U.S. Physical Therapy insiders own 2.0% of the company, worth about US$29m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The U.S. Physical Therapy Insider Transactions Indicate?

Insiders sold U.S. Physical Therapy shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that U.S. Physical Therapy is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. 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. Case in point: We've spotted 1 warning sign for U.S. Physical Therapy you should be aware of.

But note: U.S. Physical Therapy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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. Promoted

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 (at) simplywallst.com.