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Bright Health Group, Inc. (NYSE:BHG) insiders need another US$3.3m to breakeven on a US$4.5m stock purchase even after recent gains

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Insiders who purchased US$4.5m worth of Bright Health Group, Inc. (NYSE:BHG) shares over the past year recouped some of their losses after price gained 5.2% last week. However, total losses seen by insiders are still US$3.3m but in since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Bright Health Group

Bright Health Group Insider Transactions Over The Last Year

The Independent Director Jeffrey Immelt made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$8.80 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.63). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Bright Health Group insiders were buying shares, but not selling. The average buy price was around US$6.01. These transactions suggest that insiders have considered the current price attractive. 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!

insider-trading-volume
insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Bright Health Group

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 5.1% of Bright Health Group shares, worth about US$52m. 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 Bright Health Group Tell Us?

It doesn't really mean much that no insider has traded Bright Health Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Bright Health Group and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for Bright Health Group that deserve your attention before buying any shares.

Of course Bright Health Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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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.