Potential Castlight Health, Inc. (NYSE:CSLT) shareholders may wish to note that the Independent Director, Kenny Van Zant, recently bought US$258k worth of stock, paying US$1.03 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 218%.
Castlight Health Insider Transactions Over The Last Year
In fact, the recent purchase by Kenny Van Zant was the biggest purchase of Castlight Health shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.96). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Kenny Van Zant was the only individual insider to buy over the year.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Castlight Health is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 6.0% of Castlight Health shares, worth about US$8.7m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Castlight Health Insiders?
It's certainly positive to see the recent insider purchase. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Castlight Health insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Castlight Health and understanding these should be part of your investment process.
Of course Castlight Health may not be the best stock to buy. So you may wish to see this free collection of high quality 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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