We wouldn't blame Option Care Health, Inc. (NASDAQ:OPCH) shareholders if they were a little worried about the fact that Elizabeth Betten, the Independent Director recently netted about US$1.5m selling shares at an average price of US$31.09. Probably the most concerning element of the whole transaction is that the disposal amounted to 66% of their entire holding.

Option Care Health Insider Transactions Over The Last Year

In fact, the recent sale by Elizabeth Betten was the biggest sale of Option Care Health shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$31.83, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 66% of Elizabeth Betten's holding.

Happily, we note that in the last year insiders paid US$1.2m for 38.00k shares. On the other hand they divested 96.76k shares, for US$3.0m. In total, Option Care Health insiders sold more than they bought 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Option Care Health

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Option Care Health insiders own 0.7% of the company, worth about US$35m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Option Care Health Insider Transactions Indicate?

Insiders haven't bought Option Care Health stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Option Care Health. Every company has risks, and we've spotted 2 warning signs for Option Care Health you should know about.

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.

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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.