Investors who take an interest in eHealth, Inc. (NASDAQ:EHTH) should definitely note that the CEO & Director, Francis Soistman, recently paid US$4.07 per share to buy US$204k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 10%.

The Last 12 Months Of Insider Transactions At eHealth

Notably, that recent purchase by Francis Soistman is the biggest insider purchase of eHealth shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$4.45. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the eHealth insiders decided to buy shares at close to current prices.

In the last twelve months eHealth insiders were buying shares, but not selling. Their average price was about US$4.56. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does eHealth Boast High Insider Ownership?

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 4.8% of eHealth shares, worth about US$6.3m, according to our data. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At eHealth Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that eHealth insiders are expecting a bright future. 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. In terms of investment risks, we've identified 3 warning signs with eHealth and understanding them should be part of your investment process.

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.