Have HealthStream, Inc. (NASDAQ:HSTM) Insiders Been Selling Their Stock?

Investors may wish to note that the Independent Director of HealthStream, Inc., Jeffrey McLaren, recently netted US$95k from selling stock, receiving an average price of US$23.65. It wasn't a huge sale, but it did reduce their holding by 24%. This does not instill confidence.

See our latest analysis for HealthStream

The Last 12 Months Of Insider Transactions At HealthStream

Notably, that recent sale by Jeffrey McLaren is the biggest insider sale of HealthStream shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$22.50. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of HealthStream

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. HealthStream insiders own about US$143m worth of shares (which is 20% 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.

What Might The Insider Transactions At HealthStream Tell Us?

An insider sold HealthStream shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, HealthStream makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For instance, we've identified 2 warning signs for HealthStream (1 is potentially serious) you should be aware of.

But note: HealthStream may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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