Potential Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) shareholders may wish to note that the CEO & Director, Paul Black, recently bought US$252k worth of stock, paying US$7.47 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 2.8%.
The Last 12 Months Of Insider Transactions At Allscripts Healthcare Solutions
Notably, that recent purchase by Paul Black is the biggest insider purchase of Allscripts Healthcare Solutions shares that we've seen in the last year. That implies that an insider found the current price of US$7.64 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Allscripts Healthcare Solutions insiders decided to buy shares at close to current prices.
While Allscripts Healthcare Solutions insiders bought shares last year, they didn't sell. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Allscripts Healthcare Solutions
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. It appears that Allscripts Healthcare Solutions insiders own 1.4% 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.
So What Do The Allscripts Healthcare Solutions Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Allscripts Healthcare Solutions shares, given these transactions (along with notable insider ownership of the company). 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. For example - Allscripts Healthcare Solutions has 1 warning sign we think you should be aware of.
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, but not derivative transactions.
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