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TruBridge, Inc. (NASDAQ:TBRG) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 21%, resulting in a US$38m rise in the company's market capitalisation, translating to a gain of 94% on their initial investment. As a result, their original purchase of US$84.4k worth of stock is now worth US$164.1k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for TruBridge
The Last 12 Months Of Insider Transactions At TruBridge
The Independent Chairperson of the Board Glenn Tobin made the biggest insider purchase in the last 12 months. That single transaction was for US$84k worth of shares at a price of US$8.04 each. Even though the purchase was made at a significantly lower price than the recent price (US$15.63), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
You can see a visual depiction of insider transactions (by companies and 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 always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of TruBridge
For a common shareholder, it is worth checking how many shares are held by company 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. From our data, it seems that TruBridge insiders own 4.2% of the company, worth about US$8.5m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The TruBridge Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if TruBridge insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of TruBridge.