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Albert Zimmerli Is The Director of R1 RCM Inc. (NASDAQ:RCM) And They Just Spent US$99k On Shares

Whilst it may not be a huge deal, we thought it was good to see that the R1 RCM Inc. (NASDAQ:RCM) Director, Albert Zimmerli, recently bought US$99k worth of stock, for US$10.05 per share. Even though that isn't a massive buy, it did increase their holding by 99%, which is a arguably a good sign.

View our latest analysis for R1 RCM

R1 RCM Insider Transactions Over The Last Year

Notably, that recent purchase by Albert Zimmerli is the biggest insider purchase of R1 RCM shares that we've seen in the last year. That implies that an insider found the current price of US$10.24 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the R1 RCM insider decided to buy shares at close to current prices. Albert Zimmerli was the only individual insider to buy over the year.

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You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqGS:RCM Recent Insider Trading, March 15th 2020
NasdaqGS:RCM Recent Insider Trading, March 15th 2020

R1 RCM is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does R1 RCM 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. R1 RCM insiders own 9.4% of the company, currently worth about US$110m based on the recent share price. 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 R1 RCM Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest R1 RCM insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing R1 RCM. While conducting our analysis, we found that R1 RCM has 2 warning signs and it would be unwise to ignore these.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.