TBRG

TruBridge Inc($TBRG) Major Shareholders Add 80,000 Shares Amid Price Weakness, Contrasting Executive Selling

05/23/2025 21:47

Major shareholders of TruBridge Inc ($TBRG) are doubling down on their investment amid recent share price weakness, drawing significant investor attention. Over a three-day period from May 21 to May 23, major shareholder L6 Holdings Inc purchased a total of 80,000 shares worth approximately $1.93 million. What's particularly noteworthy is that these purchases occurred as the stock traded in the $24-25 range, about 20% below the $30 level reached in February 2025. $TBRG has experienced a dramatic price journey over the past year, surging from around $9 to $30 before settling at the current $24 level. While still up approximately 40% over the past six months, the stock has retreated about 20% from its March peak. TruBridge operates in the healthcare technology sector, providing revenue cycle management (RCM) and patient care solutions for hospitals and clinics. With a market capitalization of approximately $380 million, it falls into the small-cap category on NASDAQ. The recent purchases by L6 Holdings continue a consistent buying pattern demonstrated by major shareholders throughout 2025. Particularly notable was Pinetree Capital Ltd's aggressive accumulation between February 13-21, when it acquired 234,911 shares worth about $6.58 million over just nine days. This was followed by L6 Holdings purchasing 117,609 shares worth approximately $3.31 million on February 24-25. In stark contrast to these substantial insider buys, the company's President, Christopher Fowler, has sold shares on two recent occasions. He divested 5,100 shares (approximately $138,000) on March 14 and another 6,000 shares (about $150,000) on May 16. This divergence between executive selling and major shareholder buying may reflect differing short-term versus long-term perspectives. Looking at TruBridge's financial performance, the company reported adjusted earnings of 36 cents per share in the most recent quarter (Q1 2025), exceeding analyst expectations of 29 cents. Revenue increased by 4.8% year-over-year to $87.21 million. These results suggest the company is beginning to recover from its previously weak profitability. However, on a trailing twelve-month basis, TruBridge still shows a net loss of $17.43 million and carries a high debt-to-equity ratio of 101.38%. Despite these financial challenges, the company maintains a healthy operating margin of 12.16% and operating cash flow of approximately $40 million. Wall Street analysts maintain an average "buy" rating on TruBridge, with a median price target of $28.50, suggesting approximately 20% upside from current levels. Some discounted cash flow (DCF) analyses estimate $TBRG's fair value at around $35, indicating the stock may be undervalued by as much as 40%. The healthcare technology sector has been gaining attention as artificial intelligence and medical technology convergence accelerates. TruBridge has been proactive in technological innovation, forming a strategic partnership with Microsoft in May 2025 to integrate Dragon Copilot AI into its electronic health record (EHR) systems. The consistent buying by major shareholders appears to reflect confidence in these long-term growth prospects. Their substantial purchases during market weakness may be interpreted as a positive signal to shareholders. The future trajectory of $TBRG will likely depend on next quarter's results, debt management capabilities, profitability improvement trends, and the success of AI integration through the Microsoft partnership. Major shareholders seem to be betting on this long-term growth story. Significant insider buying is often considered an indicator of strong confidence in a company's future value appreciation. However, investors should remain cautious about the high debt levels and delayed profitability improvements, which continue to present risk factors. Particularly concerning would be any continued selling by executives, which could signal short-term concerns.

You can receive notifications when news is published.