Stock Analysis

Even though eHealth, Inc.'s (NASDAQ:EHTH) stock is down 16% this week, insiders who bought lately made a US$397k profit

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NasdaqGS:EHTH
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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!

insider-trading-volume
NasdaqGS:EHTH Insider Trading Volume March 14th 2023

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.

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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

View all Risks and Rewards

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1Y Return

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