Viewing insider transactions for HeartFlow, Inc.'s (NASDAQ:HTFL ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

HeartFlow Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the President, John Farquhar, for US$291k worth of shares, at about US$22.66 per share. That means that an insider was selling shares at slightly below the current price (US$26.72). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 5.2% of John Farquhar's stake. John Farquhar was the only individual insider to sell over the last year.

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!

I will like HeartFlow better if I see some big insider buys.

Does HeartFlow 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 HeartFlow insiders own 6.8% of the company, worth about US$158m. 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 HeartFlow Tell Us?

The fact that there have been no HeartFlow insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the HeartFlow insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing HeartFlow. While conducting our analysis, we found that HeartFlow has 1 warning sign and it would be unwise to ignore it.

But note: HeartFlow 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.