We wouldn't blame Molina Healthcare, Inc. (NYSE:MOH) shareholders if they were a little worried about the fact that Jeffrey Barlow, the Chief Legal Officer & Corporate Secretary recently netted about US$1.8m selling shares at an average price of US$335. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.5%.

Molina Healthcare Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Senior EVP, Mark Keim, for US$5.8m worth of shares, at about US$389 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$341). So it may not shed much light on insider confidence at current levels.

Molina Healthcare insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Molina Healthcare better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Molina Healthcare

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Molina Healthcare insiders own 1.1% of the company, currently worth about US$222m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Molina Healthcare Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Molina Healthcare makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Molina Healthcare. In terms of investment risks, we've identified 1 warning sign with Molina Healthcare and understanding this should be part of your investment process.

But note: Molina Healthcare 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 of direct interests only, but not derivative transactions or indirect interests.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com