Many LifeStance Health Group, Inc. (NASDAQ:LFST) insiders ditched their stock over the past year, which may be of interest to the company's shareholders.   Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations.  However, if numerous insiders are selling, shareholders should investigate more.    

While insider transactions are not the most important thing when it comes to long-term investing,  we would consider it foolish to ignore insider transactions altogether.

The Last 12 Months Of Insider Transactions At LifeStance Health Group

In the last twelve months, the biggest single sale by an insider was when the CEO & Chairman, Kenneth Burdick, sold US$1.3m worth of shares at a price of US$6.28 per share.    That means that an insider was selling shares at  slightly  below the current price (US$6.66).  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.  However, while insider selling is sometimes discouraging, it's only a weak signal.   This single sale was just 6.8% of Kenneth Burdick's stake.    

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

NasdaqGS:LFST Insider Trading Volume May 6th 2024

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

LifeStance Health Group Insiders Are Selling The Stock  

The last quarter saw substantial insider selling of LifeStance Health Group shares.  In total,  insiders  sold US$4.0m worth of shares in that time, and we didn't record any purchases whatsoever.  This may suggest that some insiders think that the shares are not cheap.  

Does LifeStance Health Group Boast High Insider Ownership?

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's great to see that LifeStance Health Group insiders own 13% of the company, worth about US$328m.  I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.  

So What Does This Data Suggest About LifeStance Health Group Insiders?

Insiders  sold stock recently, but they haven't been buying.     Looking to the last twelve months, our data doesn't show any insider buying.    It is good to see high insider ownership, but the insider selling leaves us cautious.      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.     You'd be interested to know, that we found 3 warning signs for LifeStance Health Group and we suggest you have a look.  

Of course LifeStance Health Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.