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The CEO & Director of eHealth, Inc. (NASDAQ:EHTH), Francis Soistman, Just Bought 23% More Shares

Investors who take an interest in eHealth, Inc. (NASDAQ:EHTH) should definitely note that the CEO & Director, Francis Soistman, recently paid US$3.08 per share to buy US$247k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 23%.

See our latest analysis for eHealth

The Last 12 Months Of Insider Transactions At eHealth

In the last twelve months, the biggest single purchase by an insider was when Independent Chairman of the Board Dale Wolf bought US$338k worth of shares at a price of US$22.53 per share. That means that even when the share price was higher than US$3.07 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for 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.

Over the last year, we can see that insiders have bought 115.00k shares worth US$790k. But insiders sold 12.00k shares worth US$98k. In total, eHealth insiders bought more than they sold over the last year. Their average price was about US$6.87. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and 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!

insider-trading-volume
insider-trading-volume

eHealth 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.

Insider Ownership Of eHealth

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests eHealth insiders own 3.7% of the company, worth about US$3.1m. We consider this fairly low insider ownership.

What Might The Insider Transactions At eHealth Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on eHealth stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing eHealth. You'd be interested to know, that we found 4 warning signs for eHealth and we suggest you have a look.

Of course eHealth 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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