Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of BrightSpring Health Services, Inc. (NASDAQ:BTSG), it sends a favourable message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

BrightSpring Health Services Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman Jon Rousseau for US$304k worth of shares, at about US$8.12 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$12.21. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

BrightSpring Health Services insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

BrightSpring Health Services is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does BrightSpring Health Services Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. BrightSpring Health Services insiders own about US$22m worth of shares. That equates to 1.1% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At BrightSpring Health Services Tell Us?

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. Insiders do have a stake in BrightSpring Health Services and their transactions don't cause us concern. Of course, the future is what matters most. So if you are interested in BrightSpring Health Services, you should check out this free report on analyst forecasts for the company.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.