We wouldn't blame Molina Healthcare, Inc. (NYSE:MOH) shareholders if they were a little worried about the fact that Mark Keim, the Senior EVP recently netted about US$5.8m selling shares at an average price of US$387. That sale reduced their total holding by 29% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Molina Healthcare

The Last 12 Months Of Insider Transactions At Molina Healthcare

In fact, the recent sale by Mark Keim was the biggest sale of Molina Healthcare shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$402). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. It is worth noting that this sale was only 29% of Mark Keim's holding.

Insiders in Molina Healthcare didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Molina Healthcare

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Molina Healthcare insiders own 1.1% of the company, worth about US$247m. 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 Molina Healthcare Insiders?

Insiders haven't bought Molina Healthcare stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Molina Healthcare makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Molina Healthcare. In terms of investment risks, we've identified 1 warning sign with Molina Healthcare and understanding this should be part of your investment process.

Of course Molina Healthcare may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.