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Don't Ignore The Fact That This Insider Just Sold Some Shares In Amedisys, Inc. (NASDAQ:AMED)

Simply Wall St

We'd be surprised if Amedisys, Inc. (NASDAQ:AMED) shareholders haven't noticed that the Chief Financial Officer, Scott Ginn, recently sold US$239k worth of stock at US$145 per share. The eyebrow raising move amounted to a reduction of 15% in their holding.

View our latest analysis for Amedisys

Amedisys Insider Transactions Over The Last Year

In fact, the recent sale by Chief Financial Officer Scott Ginn was not their only sale of Amedisys shares this year. They previously made an even bigger sale of -US$643.3k worth of shares at a price of US$132 per share. That means that even when the share price was below the current price of US$149, an insider wanted to cash in some shares. 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. We note that the biggest single sale was only 30%of Scott Ginn's holding.

Over the last year we saw more insider selling of Amedisys shares, than buying. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:AMED Recent Insider Trading, November 11th 2019

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Amedisys

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Amedisys insiders own about US$51m worth of shares. That equates to 1.1% 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 Does This Data Suggest About Amedisys Insiders?

Insiders sold Amedisys shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Amedisys makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! Of course, the future is what matters most. So if you are interested in Amedisys, you should check out this free report on analyst forecasts for the company.

Of course Amedisys may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.