Have Insiders Been Buying The Providence Service Corporation (NASDAQ:PRSC) Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in The Providence Service Corporation (NASDAQ:PRSC).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
Check out our latest analysis for Providence Service
The Last 12 Months Of Insider Transactions At Providence Service
Over the last year, we can see that the biggest insider sale was by the insider, R. Pate, for US$70k worth of shares, at about US$69.67 per share. So what is clear is that an insider saw fit to sell at around the current price of US$63.99. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). R. Pate was the only individual insider to sell shares in the last twelve months. Notably R. Pate was also the biggest buyer, having purchased US$108k worth of shares.
In the last twelve months insiders purchased 1.86k shares for US$108k. On the other hand they divested 1000 shares, for US$70k. Overall, Providence Service insiders were net buyers last year. You can see a visual depiction of insider transactions (by 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Providence Service Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at Providence Service. Specifically, insider R. Pate ditched US$70k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Does Providence Service Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.1% of Providence Service shares, worth about US$9.0m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Providence Service Insiders?
An insider sold Providence Service shares recently, but they didn't buy any. But we take heart from prior transactions. But insiders own relatively little of the company, from what we can see. So overall it's hard to argue insiders are bullish. Of course, the future is what matters most. So if you are interested in Providence Service, you should check out this free report on analyst forecasts for the company.
Of course Providence Service 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.
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.
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