GoHealth, Inc. (NASDAQ:GOCO) up 16%, but insiders are still down 79% after purchasing US$2.1m of stock last year
Some of the losses seen by insiders who purchased US$2.1m worth of GoHealth, Inc. (NASDAQ:GOCO) shares over the past year were recovered after the stock increased by 16% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$1.6m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for GoHealth
GoHealth Insider Transactions Over The Last Year
The Co-Founder Brandon Cruz made the biggest insider purchase in the last 12 months. That single transaction was for US$1.9m worth of shares at a price of US$3.66 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.78). 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 an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Brandon Cruz was the only individual insider to buy during the last year.
Brandon Cruz bought a total of 554.21k shares over the year at an average price of US$3.70. 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!
GoHealth 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.
Does GoHealth Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data isn't picking up on much insider ownership at GoHealth, though insiders do hold about US$913k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
So What Does This Data Suggest About GoHealth Insiders?
The fact that there have been no GoHealth insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more GoHealth 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. Be aware that GoHealth is showing 3 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...
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.
