Investors who take an interest in Option Care Health, Inc. (NASDAQ:OPCH) should definitely note that the Executive VP & CFO, Meenal Sethna, recently paid US$20.16 per share to buy US$327k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 20%.

The Last 12 Months Of Insider Transactions At Option Care Health

Over the last year, we can see that the biggest insider purchase was by Independent Non Executive Chairman of the Board Harry M. Kraemer for US$987k worth of shares, at about US$25.98 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$21.30). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid US$3.3m for 127.89k shares. On the other hand they divested 36.29k shares, for US$1.2m. In the last twelve months there was more buying than selling by Option Care Health insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Option Care Health 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Option Care Health insiders own 1.1% of the company, worth about US$37m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Option Care Health Tell Us?

Unfortunately, there has been more insider selling of Option Care Health stock, than buying, in the last three months. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So we're not overly bothered by recent 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.

But note: Option Care Health may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.