Anyone interested in eHealth, Inc. (NASDAQ:EHTH) should probably be aware that the Independent Director, Dale Wolf, recently divested US$105k worth of shares in the company, at an average price of US$5.25 each. That sale was 14% of their holding, so it does make us raise an eyebrow.

The Last 12 Months Of Insider Transactions At eHealth

The CEO & Director Francis Soistman made the biggest insider purchase in the last 12 months. That single transaction was for US$204k worth of shares at a price of US$4.07 each. Even though the purchase was made at a significantly lower price than the recent price (US$4.78), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$358k for 87.37k shares. On the other hand they divested 20.00k shares, for US$105k. In total, eHealth insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of eHealth

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. Our data indicates that eHealth insiders own about US$7.3m worth of shares (which is 5.1% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About eHealth Insiders?

The insider sales have outweighed the insider buying, at eHealth, in the last three months. In contrast, they appear keener if you look at the last twelve months. But we'd like it if insiders owned more stock, overall. So the company doesn't look great on this analysis. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for eHealth you should be aware of.

Of course eHealth 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 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.