HealthEquity, Inc. (NASDAQ:HQY) insiders placed bullish bets worth US$1.8m in the last 12 months
Over the last year, a good number of insiders have significantly increased their holdings in HealthEquity, Inc. (NASDAQ:HQY). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for HealthEquity
The Last 12 Months Of Insider Transactions At HealthEquity
The Independent Director Stuart Parker made the biggest insider purchase in the last 12 months. That single transaction was for US$1.1m worth of shares at a price of US$42.82 each. Even though the purchase was made at a significantly lower price than the recent price (US$52.81), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Happily, we note that in the last year insiders paid US$1.8m for 42.39k shares. But they sold 23.44k shares for US$1.7m. In the last twelve months there was more buying than selling by HealthEquity insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at HealthEquity Have Bought Stock Recently
It's good to see that HealthEquity insiders have made notable investments in the company's shares. Overall, three insiders shelled out US$1.8m for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership of HealthEquity
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that HealthEquity insiders own 1.8% of the company, worth about US$80m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About HealthEquity Insiders?
The recent insider purchases are heartening. 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. When combined with notable insider ownership, these factors suggest HealthEquity insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that HealthEquity has 2 warning signs and it would be unwise to ignore them.
But note: HealthEquity may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
