eHealth, Inc. (NASDAQ:EHTH) insiders placed bullish bets worth US$1.8m in the last 12 months
Quite a few insiders have dramatically grown their holdings in eHealth, Inc. (NASDAQ:EHTH) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for eHealth
eHealth Insider Transactions Over The Last Year
The Independent Chairman of the Board Dale Wolf made the biggest insider purchase in the last 12 months. That single transaction was for US$802k worth of shares at a price of US$29.97 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.86). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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 insiders purchased 79.06k shares for US$1.8m. But they sold 11.18k shares for US$205k. In the last twelve months there was more buying than selling by eHealth insiders. They paid about US$23.38 on average. This is nice to see since it implies that insiders might see value around current prices. 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!
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests eHealth insiders own 3.7% of the company, worth about US$2.9m. We consider this fairly low insider ownership.
What Might The Insider Transactions At eHealth Tell Us?
The fact that there have been no eHealth insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more eHealth stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing eHealth. At Simply Wall St, we found 4 warning signs for eHealth that deserve your attention before buying any shares.
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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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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