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Whilst it may not be a huge deal, we thought it was good to see that the National Health Investors, Inc. (NYSE:NHI) Independent Director, Robert Webb, recently bought US$77k worth of stock, for US$65.00 per share. Although the purchase is not a big one, increasing their shareholding by only 1.3%, it can be interpreted as a good sign.
National Health Investors Insider Transactions Over The Last Year
The Independent Director Robert Adams made the biggest insider purchase in the last 12 months. That single transaction was for US$332k worth of shares at a price of US$66.45 each. That implies that an insider found the current price of US$67.40 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for National Health Investors share holders is that insiders were buying at near the current price.
While National Health Investors insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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. 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).
Does National Health Investors Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. National Health Investors insiders own about US$123m worth of shares (which is 4.0% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The National Health Investors Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about National Health Investors. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing National Health Investors. For instance, we've identified 2 warning signs for National Health Investors (1 can't be ignored) you should be aware of.
But note: National Health Investors may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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. 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.
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