It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in BrightSpring Health Services, Inc.'s (NASDAQ:BTSG) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for BrightSpring Health Services
The Last 12 Months Of Insider Transactions At BrightSpring Health Services
In the last twelve months, the biggest single purchase by an insider was when Chairman Jon Rousseau bought US$304k worth of shares at a price of US$8.12 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$22.15. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While BrightSpring Health Services insiders bought shares during the last year, they didn't sell. 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!
BrightSpring Health 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 Of BrightSpring Health Services
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. BrightSpring Health Services insiders own about US$40m worth of shares. That equates to 1.0% of the company. 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 BrightSpring Health Services Insider Transactions Indicate?
It doesn't really mean much that no insider has traded BrightSpring Health Services shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in BrightSpring Health Services and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in BrightSpring Health Services, you should check out this free report on analyst forecasts for the company.
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.
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