Despite a 11% gain in agilon health, inc.'s (NYSE:AGL) stock price this week, shareholders shouldn't let up. In spite of the relatively cheap prices, insiders made the decision to sell US$833k worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.
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 agilon health
The Last 12 Months Of Insider Transactions At agilon health
Over the last year, we can see that the biggest insider sale was by the Chief Markets Officer, Ben Shaker, for US$833k worth of shares, at about US$23.81 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$13.08. So it is hard to draw any strong conclusion from it. Ben Shaker was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 66.99k shares worth US$748k. But insiders sold 35.00k shares worth US$833k. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
agilon health Insiders Bought Stock Recently
Over the last quarter, agilon health insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$748k for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership
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. We usually like to see fairly high levels of insider ownership. It appears that agilon health insiders own 1.1% of the company, worth about US$57m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At agilon health Tell Us?
It is good to see recent purchasing. But we can't say the same for the transactions over the last 12 months. While recent transactions indicate confidence in agilon health, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. Overall they seem reasonably aligned. Of course, the future is what matters most. So if you are interested in agilon health, you should check out this free report on analyst forecasts for the company.
But note: agilon health 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.