Trade Alert: Independent Director Of HealthEquity Stuart Parker Has Sold Stock

Some HealthEquity, Inc. (NASDAQ:HQY) shareholders may be a little concerned to see that the Independent Director, Stuart Parker, recently sold a substantial US$2.4m worth of stock at a price of US$96.72 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 82% of their entire holding.

View our latest analysis for HealthEquity

The Last 12 Months Of Insider Transactions At HealthEquity

Notably, that recent sale by Stuart Parker is the biggest insider sale of HealthEquity shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$95.62. While insider selling is a negative, to us, it is more negative if the shares are sold 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).

Insiders in HealthEquity didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does HealthEquity Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. HealthEquity insiders own about US$140m worth of shares (which is 1.7% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About HealthEquity Insiders?

Insiders haven't bought HealthEquity stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since HealthEquity is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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 2 warning signs with HealthEquity and understanding them 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.