This Insider Has Just Sold Shares In Tabula Rasa HealthCare, Inc. (NASDAQ:TRHC)

Anyone interested in Tabula Rasa HealthCare, Inc. (NASDAQ:TRHC) should probably be aware that the CFO & Secretary, Brian Adams, recently divested US$257k worth of shares in the company, at an average price of US$41.75 each. However, the silver lining is that the sale only reduced their total holding by 2.8%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Tabula Rasa HealthCare

Tabula Rasa HealthCare Insider Transactions Over The Last Year

Notably, that recent sale by Brian Adams is the biggest insider sale of Tabula Rasa HealthCare shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$46.96). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 2.8% of Brian Adams's holding.

Insiders in Tabula Rasa HealthCare didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Tabula Rasa HealthCare

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. It appears that Tabula Rasa HealthCare insiders own 9.0% of the company, worth about US$95m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Tabula Rasa HealthCare Tell Us?

Insiders sold Tabula Rasa HealthCare shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tabula Rasa HealthCare. At Simply Wall St, we found 4 warning signs for Tabula Rasa HealthCare that deserve your attention before buying any shares.

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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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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