Stock Analysis
- United States
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- Insurance
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- NasdaqGS:EHTH
Even though eHealth, Inc.'s (NASDAQ:EHTH) stock is down 16% this week, insiders who bought lately made a US$397k profit
Insiders who purchased eHealth, Inc. (NASDAQ:EHTH) shares in the past 12 months are unlikely to be deeply impacted by the stock's 16% decline over the past week. After accounting for the recent loss, the US$247k worth of shares they purchased is now worth US$643k, suggesting a good return on their investment.
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.
Check out our latest analysis for eHealth
eHealth Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Francis Soistman bought US$247k worth of shares at a price of US$3.08 per share. We do like to see buying, but this purchase was made at well below the current price of US$8.04. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
eHealth is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that eHealth insiders own about US$6.7m worth of shares (which is 3.0% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About eHealth Insiders?
It doesn't really mean much that no insider has traded eHealth shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if eHealth insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with eHealth (including 1 which is potentially serious).
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.
What are the risks and opportunities for eHealth?
eHealth, Inc. operates a health insurance marketplace that provides consumer engagement, education, and health insurance enrollment solutions in the United States.
Rewards
Revenue is forecast to grow 7.47% per year
Risks
Shareholders have been diluted in the past year
Volatile share price over the past 3 months
Currently unprofitable and not forecast to become profitable over the next 3 years
Further research on
eHealth
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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.
About NasdaqGS:EHTH
eHealth
eHealth, Inc. operates a health insurance marketplace that provides consumer engagement, education, and health insurance enrollment solutions in the United States.
Adequate balance sheet and slightly overvalued.
