Possible Bearish Signals With Oscar Health Insiders Disposing Stock

The fact that multiple Oscar Health, Inc. (NYSE:OSCR) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Oscar Health

Oscar Health Insider Transactions Over The Last Year

The Executive VP & Chief Insurance Officer, Alessandrea Quane, made the biggest insider sale in the last 12 months. That single transaction was for US$991k worth of shares at a price of US$18.02 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$19.50. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 18% of Alessandrea Quane's holding.

In the last year Oscar Health insiders didn't buy any company stock. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Oscar Health Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Oscar Health insiders own 2.5% of the company, worth about US$116m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Oscar Health Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Oscar Health shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Oscar Health insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Oscar Health. Case in point: We've spotted 1 warning sign for Oscar Health you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.