In this article, I will feature one healthcare company that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:
- The stock is purchased by three or more insiders within one month.
- The stock is sold by no insiders in the month of intensive purchasing.
- At least two purchasers increase their holdings by more than 10%.
Healthways (HWAY) provides specialized solutions to assist people to maintain and enhance their physical, emotional, and social well-being.
Insider buying during the last 30 days
Here is a table of Healthways' insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Purchased||Current Ownership||Increase In Shares|
|Alison Taunton-Rigby||Director||Nov 7||4,100||22,155 shares||+22.7%|
|Donato Tramuto||Director||Nov 7||4,200||4,200 shares||from 0 to 4,200|
|Alfred Lumsdaine||CFO||Oct 29||5,000||22,821 shares||+28.1%|
There have been 13,300 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of Healthways' insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 13,300 shares purchased and there have been zero shares sold by insiders since September 2013. The month of November has seen the most insider buying.
Healthways reported the third-quarter financial results on October 24 with the following highlights:
|Net income||$1.8 million|
Healthways' guidance is as follows:
|Revenue||$171-$181 million||$665-$675 million||$725-$760 million|
|EPS||$0.00-$0.06||-$0.10 to -$0.04||N/A|
Healthways is trading above the industry-average P/S ratio.
Here is a table of these competitors' insider-trading activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only Healthways has seen intensive insider buying during the last 30 days.
There have been three different insiders buying Healthways and there have not been any insiders selling Healthways during the last 30 days. All three of these insiders increased their holdings by more than 10%. Healthways has an insider ownership of 1.70%.
There are four analyst buy ratings, three neutral ratings, and three sell ratings with an average price target of $13.86. Healthways is trading at a forward P/E ratio of 38.64 and the company has a book value of $8.86 per share.
Healthways reported the third-quarter financial results on October 24, and the stock plunged after the report. The insiders started buying shares after the plunge. I believe the stock could be a good pick around $10 based on the intensive insider buying.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in HWAY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.