Insiders seem to have made the most of their holdings by selling US$2.7m worth of HealthEquity, Inc. (NASDAQ:HQY) stock at an average sell price of US$70.47 during the past year. The company's market worth decreased by US$385m over the past week after the stock price dropped 6.4%, although insiders were able to minimize their losses

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.

See our latest analysis for HealthEquity

The Last 12 Months Of Insider Transactions At HealthEquity

The Independent Director, Ian Sacks, made the biggest insider sale in the last 12 months. That single transaction was for US$1.8m worth of shares at a price of US$72.28 each. So we know that an insider sold shares at around the present share price of US$67.17. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid US$1.8m for 42.39k shares. But insiders sold 38.86k shares worth US$2.7m. All up, insiders sold more shares in HealthEquity than they bought, over the last year. 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!

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

HealthEquity Insiders Are Selling The Stock

The last quarter saw substantial insider selling of HealthEquity shares. In total, insiders sold US$2.1m 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.

Insider Ownership Of HealthEquity

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that HealthEquity insiders own 1.9% of the company, worth about US$109m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About HealthEquity Insiders?

Insiders haven't bought HealthEquity stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, HealthEquity has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.

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, 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.