Executive VP Jason Bundick Sold A Bunch Of Shares In Healthcare Services Group
We'd be surprised if Healthcare Services Group, Inc. (NASDAQ:HCSG) shareholders haven't noticed that the Executive VP, Jason Bundick, recently sold US$458k worth of stock at US$25.11 per share. In particular, we note that the sale equated to a 52% reduction in their position size, which doesn't exactly instill confidence.
Healthcare Services Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Executive VP & Chief Revenue Officer, Patrick Orr, for US$916k worth of shares, at about US$20.55 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$24.06. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 100% of Patrick Orr's holding.
Healthcare Services Group insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Healthcare Services Group
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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. It appears that Healthcare Services Group insiders own 1.1% of the company, worth about US$18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Healthcare Services Group Tell Us?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But it is good to see that Healthcare Services Group is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Healthcare Services Group you should be aware of, and 1 of them is significant.
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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 of direct interests only, but not derivative transactions or indirect interests.
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