eHealth Independent Chairman of the Board Acquires 18% More Stock \
Whilst it may not be a huge deal, we thought it was good to see that the eHealth, Inc. (NASDAQ:EHTH) Independent Chairman of the Board, Dale Wolf, recently bought US$83k worth of stock, for US$6.38 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 18%.
View our latest analysis for eHealth
eHealth Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO & Director Francis Soistman for US$247k worth of shares, at about US$3.08 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$8.43. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months insiders purchased 98.43k shares for US$365k. But insiders sold 5.00k shares worth US$16k. In the last twelve months there was more buying than selling by eHealth insiders. They paid about US$3.71 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does eHealth Boast High Insider Ownership?
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. From looking at our data, insiders own US$3.7m worth of eHealth stock, about 1.6% of the company. I generally like to see higher levels of ownership.
So What Does This Data Suggest About eHealth Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little 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. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of eHealth.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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