Insider Buying: The National Health Investors, Inc. (NYSE:NHI) Independent Director Just Bought 2.9% More Shares

By
Simply Wall St
Published
December 03, 2021
NYSE:NHI
Source: Shutterstock

Potential National Health Investors, Inc. (NYSE:NHI) shareholders may wish to note that the Independent Director, Robert Webb, recently bought US$156k worth of stock, paying US$52.02 for each share. Although the purchase only increased their holding by 2.9%, it is still a solid purchase in our view.

See our latest analysis for National Health Investors

National Health Investors Insider Transactions Over The Last Year

In fact, the recent purchase by Independent Director Robert Webb was not their only acquisition of National Health Investors shares this year. Earlier in the year, they paid US$57.50 per share in a US$172k purchase. That means that an insider was happy to buy shares at above the current price of US$53.46. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

National Health Investors insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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:NHI Insider Trading Volume December 4th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does National Health Investors Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. National Health Investors insiders own about US$99m worth of shares. That equates to 4.0% of the company. 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 National Health Investors Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest National Health Investors insiders are well aligned, and that they may think the share price is too low. 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. At Simply Wall St, we've found that National Health Investors has 3 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

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.

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.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.