Bargain Hunters Take Note: Insider Cluster-Buying At AMED
By Market News Video Staff, Tuesday, November 22, 12:11 PM ET
A particularly strong insider buying signal is what we call a "cluster-buy" where three or more different insiders make open market purchases within a short period of one another. At Amedisys, Inc. (NASDAQ:AMED), 3 different insiders purchased 8,483 shares at an average price of $10.49/share, for a total of $88,993, with the most recent purchase on November 14, 2011.
Presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money. So when multiple insiders all decide to make purchases around the same time, it could be a strong indication that the stock is undervalued. Below is a table summarizing the insider buys that make up this "cluster":
David R Pitts
Jack L Netterville
The chart below shows the one year performance of AMED shares, versus its 200 day moving average. Note that AMED's low point in its 52 week range is $9.12 per share, with $38.87 as the 52 week high point — that compares with a last trade of $10.56, with shares currently trading off about 4.7% on the day.
AMED operates in the Diagnostics sector, among companies like Bio-Reference Laboratories, Inc. (NASDAQ:BRLI) which is down about 1.5% today, and Landauer, Inc. (NYSE:LDR) trading lower by about 0.6%. Below is a three month price history chart comparing the stock performance of AMED, versus BRLI and LDR.
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