Potential Evolent Health, Inc. (NYSE:EVH) shareholders may wish to note that the Co-Founder, Frank Williams, recently bought US$228k worth of stock, paying US$6.51 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.8%.
Evolent Health Insider Transactions Over The Last Year
In fact, the recent purchase by Frank Williams was the biggest purchase of Evolent Health shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$7.87 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Evolent Health share holders is that insiders were buying at near the current price.
In the last twelve months Evolent Health insiders were buying shares, but not selling. They paid about US$7.42 on average. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Evolent Health is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Our data indicates that Evolent Health insiders own about US$7.5m worth of shares (which is 1.1% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Evolent Health Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Evolent Health insiders are reasonably well aligned, and optimistic for the future. Of course, the future is what matters most. So if you are interested in Evolent Health, you should check out this free report on analyst forecasts for the company.
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.
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