Option Care Health Insiders Added US$3.22m Of Stock To Their Holdings

In the last year, multiple insiders have substantially increased their holdings of Option Care Health, Inc. (NASDAQ:OPCH) stock, indicating that insiders' optimism about the company's prospects has increased.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Option Care Health

Option Care Health Insider Transactions Over The Last Year

The Independent Non Executive Chairman of the Board Harry M. Kraemer made the biggest insider purchase in the last 12 months. That single transaction was for US$1.9m worth of shares at a price of US$34.63 each. That means that even when the share price was higher than US$28.18 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Over the last year, we can see that insiders have bought 96.97k shares worth US$3.2m. But they sold 1.98k shares for US$63k. In the last twelve months there was more buying than selling by Option Care Health insiders. 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!

Option Care Health is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Option Care Health 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Option Care Health insiders own 0.6% of the company, worth about US$30m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Option Care Health Insiders?

The fact that there have been no Option Care Health insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Option Care Health and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Option Care Health. To that end, you should learn about the 3 warning signs we've spotted with Option Care Health (including 1 which can't be ignored).

But note: Option Care Health 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com