Clover Health Investments Co., Ltd. (NASDAQ:CLOV) insiders who bought shares within the last 12 months were rewarded handsomely last week, as the share price rose 12% and the company’s market cap increased by $55 million, meaning that shares originally purchased for $149.9k are now worth $188.7k.
While we don’t believe shareholders should simply keep track of insider transactions, we think it is perfectly logical to keep an eye on insider activity.
View our latest analysis for Clover Health Investments
Insider transactions at Clover Health Investments over the last 12 months
It’s worth noting that the recent purchase by Independent Director Anna Lowengard wasn’t the only time Clover Health Investments shares were purchased this year. The company previously made an even larger purchase of $110,000 worth of shares at $0.73 per share. While this purchase was made at a significantly lower price than the recent price ($1.00), we still consider insider purchases a positive. While it suggests that insiders believe the stock is undervalued at a low price, this transaction doesn’t tell us much about what they think of the current price.
Anna Loengard has bought 188.71k shares in the last 12 months at an average price of US$0.79. The chart below shows insider transactions (by companies and individuals) over the last year: If you want to see exactly who sold, for how much, and when, you can click on the chart below.
Clover Health Investments isn’t the only stock insiders are buying. Small-cap companies at attractive valuations; this free This free list of growing companies with recent insider purchasing, could be just what you’re looking for.
Insider Ownership
For common shareholders, it’s worth checking how many shares are held by company insiders. Typically, the higher the insider ownership, the more likely they are incentivized to grow the company in the long term. Clover Health Investments insiders own about US$118m worth of shares (24% of the company). Most shareholders would be happy to see this kind of insider ownership, as it suggests that management’s incentives are well aligned with other shareholders.
So what does Clover Health Investments’ insider transactions indicate?
The recent insider purchases are encouraging, and the long-term insider transactions also give us confidence. However, we don’t feel the same way about the fact that the company is losing money. Given the high insider ownership, it seems that insiders are positive about Clover Health Investments. At the very least, it’s one to put on your watchlist! While it’s important to know what’s going on with insider holdings and transactions, we also make sure to consider the risks facing the stock before making any investment decisions. For example: 3 warning signs for Clover Health Investments You should know.
of course Clover Health Investments may not be the best stock to buySo you might want to take a look at this free A collection of high-quality companies.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory bodies. Currently, we count only open market transactions and private dispositions of direct interests, not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We use only unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives, or your financial situation. We seek to provide long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
