Trade Alert: Chief Product & Technology Officer Of Definitive Healthcare William Moschella Has Sold Stock

We'd be surprised if Definitive Healthcare Corp. (NASDAQ:DH) shareholders haven't noticed that the Chief Product & Technology Officer, William Moschella, recently sold US$212k worth of stock at US$4.70 per share. Equally important, that sale actually reduced their holding by a full 68% which hardly makes us feel bullish about the stock.

See our latest analysis for Definitive Healthcare

Definitive Healthcare Insider Transactions Over The Last Year

Notably, that recent sale by William Moschella is the biggest insider sale of Definitive Healthcare shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$4.66. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Definitive Healthcare Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Definitive Healthcare insiders own about US$11m worth of shares. That equates to 1.5% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Definitive Healthcare Insiders?

An insider sold Definitive Healthcare shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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. Every company has risks, and we've spotted 2 warning signs for Definitive Healthcare you should know about.

Of course Definitive Healthcare 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.