We wouldn't blame Amedisys, Inc. (NASDAQ:AMED) shareholders if they were a little worried about the fact that Bruce Perkins, the Independent Director recently netted about US$2.1m selling shares at an average price of US$183. That's a big disposal, and it decreased their holding size by 40%, which is notable but not too bad.
Amedisys Insider Transactions Over The Last Year
Notably, that recent sale by Bruce Perkins is the biggest insider sale of Amedisys shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$183). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 40% of Bruce Perkins's stake.
All up, insiders sold more shares in Amedisys than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Insider Ownership of Amedisys
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Amedisys insiders own about US$109m worth of shares (which is 1.9% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Amedisys Insider Transactions Indicate?
Insiders haven't bought Amedisys stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Amedisys is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Amedisys. For example - Amedisys has 2 warning signs we think you should be aware of.
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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.
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.
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