When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Tabula Rasa HealthCare, Inc.'s (NASDAQ:TRHC) instance, it's good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Tabula Rasa HealthCare

Tabula Rasa HealthCare Insider Transactions Over The Last Year

The Independent Chair Michael Purcell made the biggest insider purchase in the last 12 months. That single transaction was for US$58k worth of shares at a price of US$5.84 each. That means that an insider was happy to buy shares at around the current price of US$6.00. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices. Notably Michael Purcell was also the biggest seller.

Over the last year, we can see that insiders have bought 38.50k shares worth US$205k. But insiders sold 10.00k shares worth US$43k. In total, Tabula Rasa HealthCare insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Tabula Rasa HealthCare is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Are Tabula Rasa HealthCare Insiders Buying Or Selling?

Over the last three months, we've seen a bit of insider buying at Tabula Rasa HealthCare. In that period Chief Financial Officer Thomas Cancro spent US$50k on shares. However, Independent Chair Michael Purcell netted US$43k for sales. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.

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. We usually like to see fairly high levels of insider ownership. It appears that Tabula Rasa HealthCare insiders own 10% of the company, worth about US$16m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Tabula Rasa HealthCare Insiders?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Tabula Rasa HealthCare and their transactions don't cause us concern. 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. Case in point: We've spotted 4 warning signs for Tabula Rasa HealthCare you should be aware of, and 1 of these is significant.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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