The Director of HealthStream, Inc. (NASDAQ:HSTM), Jeffrey McLaren, Just Sold -26.051164% Of Their Holding

Anyone interested in HealthStream, Inc. (NASDAQ:HSTM) should probably be aware that the Director, Jeffrey McLaren, recently divested US$143k worth of shares in the company, at an average price of US$28.58 each. That sale was 26.1% of their holding, so it does make us raise an eyebrow.

View our latest analysis for HealthStream

HealthStream Insider Transactions Over The Last Year

Notably, that recent sale by Jeffrey McLaren is the biggest insider sale of HealthStream shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$28.64). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 26.1% of Jeffrey McLaren's stake.

In the last twelve months insiders netted US$172k for 6116 shares sold. HealthStream insiders didn't buy any shares over the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Insider Ownership of HealthStream

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. HealthStream insiders own about US$188m 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.

So What Do The HealthStream Insider Transactions Indicate?

Insiders sold HealthStream shares recently, but they didn't buy any. And even if we look to the last year, we didn't see any purchases. On the plus side, HealthStream makes money, and is growing profits. 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. Of course, the future is what matters most. So if you are interested in HealthStream, you should check out this free report on analyst forecasts for the company.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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