Hims & Hers Health, Inc.'s (NYSE:HIMS) value has fallen 13% in the last week, but insiders who sold US$5.9m worth of stock over the last year have had less success. Given that the average selling price of US$5.50 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Hims & Hers Health

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

In the last twelve months, the biggest single sale by an insider was when the insider, Jack Abraham, sold US$5.5m worth of shares at a price of US$5.55 per share. That means that an insider was selling shares at slightly below the current price (US$5.78). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 7.5% of Jack Abraham's holding.

In the last twelve months insiders purchased 141.40k shares for US$719k. But insiders sold 1.07m shares worth US$5.9m. In total, Hims & Hers Health insiders sold more than they bought over the last year. They sold for an average price of about US$5.50. It's not too encouraging to see that insiders have sold at below the current price. But we wouldn't put too much weight on the insider selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Hims & Hers Health better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Hims & Hers Health Insiders Are Selling The Stock

The last three months saw some Hims & Hers Health insider selling. Independent Director Lynne O'Keefe divested only US$44k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Hims & Hers Health insiders own 16% of the company, currently worth about US$196m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Hims & Hers Health Tell Us?

Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we're not worried. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Hims & Hers Health insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Hims & Hers Health has 1 warning sign we think you should be aware of.

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.

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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.