We wouldn't blame Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) shareholders if they were a little worried about the fact that Rodney Windley, the Executive Chairman recently netted about US$2.1m selling shares at an average price of US$11.50. However, that sale only accounted for 8.0% of their holding, so arguably it doesn't say much about their conviction.

Aveanna Healthcare Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the President, Jeffrey Shaner, sold US$3.4m worth of shares at a price of US$7.65 per share. That means that even when the share price was below the current price of US$13.62, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 21% of Jeffrey Shaner's holding.

Insiders in Aveanna Healthcare Holdings didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Aveanna Healthcare Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Aveanna Healthcare Holdings insiders own about US$94m worth of shares. That equates to 3.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Aveanna Healthcare Holdings Tell Us?

Insiders sold Aveanna Healthcare Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Aveanna Healthcare Holdings is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

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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.

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.