Irene Becklund Is The Principal Accounting Officer of Hims & Hers Health, Inc. (NYSE:HIMS) And They Just Sold 57% Of Their Shares

Investors may wish to note that the Principal Accounting Officer of Hims & Hers Health, Inc., Irene Becklund, recently netted US$77k from selling stock, receiving an average price of US$5.26. While that isn't a lot of money, it was a substantial 57% of their holding, so certainly isn't a good sign.

See our latest analysis for Hims & Hers Health

The Last 12 Months Of Insider Transactions At Hims & Hers Health

The insider, Jack Abraham, made the biggest insider sale in the last 12 months. That single transaction was for US$5.5m worth of shares at a price of US$5.55 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$4.89. So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 442.60k shares for US$3.5m. But they sold 1.01m shares for US$5.6m. In total, Hims & Hers Health insiders sold more than they bought over the last year. The sellers received a price of around US$5.54, on average. It is certainly not great to see that insiders have sold shares in the company. But the selling was at much higher prices than the current share price (US$4.89), so it probably doesn't tell us a lot about the value on offer today. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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 Hims & Hers Health

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Hims & Hers Health insiders own 16% of the company, worth about US$164m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Hims & Hers Health Insiders?

The stark truth for Hims & Hers 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. 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. While we like knowing 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. In terms of investment risks, we've identified 3 warning signs with Hims & Hers Health and understanding these should be part of your investment process.

But note: Hims & Hers 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, but not derivative transactions.

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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.