Option Care Health, Inc. (NASDAQ:OPCH) shareholders (or potential shareholders) will be happy to see that the Independent Non Executive Chairman of the Board, Harry M. Kraemer, recently bought a whopping US$969k worth of stock, at a price of US$22.54. Not only is that a big swing, but it increased their holding size by 15%, which is definitely great to see.
The Last 12 Months Of Insider Transactions At Option Care Health
Over the last year, we can see that the biggest insider sale was by the Independent Director, Elizabeth Betten, for US$1.5m worth of shares, at about US$31.09 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$22.19). So it may not shed much light on insider confidence at current levels.
All up, insiders sold more shares in Option Care Health than they bought, over the last year. The average sell price was around US$31.03. We are not joyful about insider selling. But the selling was at much higher prices than the current share price (US$22.19), so it probably doesn't tell us a lot about the value on offer today. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Option Care Health insiders own 0.6% of the company, worth about US$23m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Option Care Health Tell Us?
The stark truth for Option Care Health is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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. At Simply Wall St, we found 2 warning signs for Option Care Health that deserve your attention before buying any shares.
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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.
