Executive VP & CTO Of HealthEquity Sold 100% Of Their Shares

We wouldn't blame HealthEquity, Inc. (NASDAQ:HQY) shareholders if they were a little worried about the fact that Elimelech Rosner, the Executive VP & CTO recently netted about US$947k selling shares at an average price of US$77.02. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

View our latest analysis for HealthEquity

The Last 12 Months Of Insider Transactions At HealthEquity

In fact, the recent sale by Elimelech Rosner was the biggest sale of HealthEquity shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$75.15. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year HealthEquity insiders didn't buy any company stock. 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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Does HealthEquity Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. HealthEquity insiders own 1.7% of the company, currently worth about US$111m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The HealthEquity Insider Transactions Indicate?

Insiders haven't bought HealthEquity stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, HealthEquity makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with HealthEquity and understanding it should be part of your investment process.

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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.