Independent Non Executive Chairman of the Board of Option Care Health Picks Up 15% More Stock

Option Care Health, Inc. (NASDAQ:OPCH) shareholders (or potential shareholders) will be happy to see that the Independent Non Executive Chairman of the Board, Harry M. Kraemer, recently bought a whopping US$969k worth of stock, at a price of US$22.54. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 15%.

View our latest analysis for Option Care Health

The Last 12 Months Of Insider Transactions At Option Care Health

The Independent Director, Elizabeth Betten, made the biggest insider sale in the last 12 months. That single transaction was for US$1.5m worth of shares at a price of US$31.09 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$22.19). So it is hard to draw any strong conclusion from it.

In total, Option Care Health insiders sold more than they bought over the last year. The sellers received a price of around US$31.03, on average. We are not joyful about insider selling. However, we do note that the average sale price was significantly higher than the current share price (which is US$22.19). You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of Option Care Health

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.6% of Option Care Health shares, worth about US$23m. 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 Do The Option Care Health Insider Transactions Indicate?

The stark truth for Option Care Health is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Option Care Health you should know about.

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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.