We wouldn't blame Clover Health Investments, Corp. (NASDAQ:CLOV) shareholders if they were a little worried about the fact that Andrew Toy, the Co-Founder recently netted about US$1.7m selling shares at an average price of US$5.32. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.9%.

Clover Health Investments Insider Transactions Over The Last Year

Notably, that recent sale by Andrew Toy is the biggest insider sale of Clover Health Investments shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$5.06. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 473.48k shares worth US$1.1m. But they sold 683.04k shares for US$2.8m. Over the last year we saw more insider selling of Clover Health Investments shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Clover Health Investments Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Clover Health Investments insiders own about US$603m worth of shares (which is 22% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Clover Health Investments Tell Us?

Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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.

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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.

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.