Don't Ignore The Insider Selling In Addus HomeCare

Anyone interested in Addus HomeCare Corporation (NASDAQ:ADUS) should probably be aware that a company insider, David Tucker, recently divested US$277k worth of shares in the company, at an average price of US$115 each. The eyebrow raising move amounted to a reduction of 22% in their holding.

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The Last 12 Months Of Insider Transactions At Addus HomeCare

The President & COO, W. Bickham, made the biggest insider sale in the last 12 months. That single transaction was for US$661k worth of shares at a price of US$132 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$113). So it is hard to draw any strong conclusion from it.

Insiders in Addus HomeCare didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Addus HomeCare

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Insider Ownership Of Addus HomeCare

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Addus HomeCare insiders own about US$53m worth of shares. That equates to 2.6% 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.

What Might The Insider Transactions At Addus HomeCare Tell Us?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Addus HomeCare is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! While it's good to be aware of 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 Addus HomeCare 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 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.