Many Elevance Health, Inc. (NYSE:ELV) insiders have been dumping their shares over the past year, which may be of interest to the company’s shareholders. Knowing if insiders are buying is usually more helpful in evaluating insider transactions, as insider selling can have various explanations. However, if multiple insiders are selling shares over a period of time, shareholders should pay attention, as this could potentially be a warning sign.

While we would never suggest that investors should base their decisions solely on the activities of a company’s management, we think it is perfectly logical to keep an eye on the activities of insiders.

Check out our latest analysis for Elevance Health

The last 12 months of insider transactions at Elevance Health

The largest single sale by an insider in the last twelve months was when Executive VP & President of Government Health Benefits, Felicia Norwood, sold US$6.8 million worth of shares at a price of US$535 per share. This means that an insider sold shares below the current price ($539). We generally view it as a negative when insiders have sold, particularly when they did so below the current price, because it implies they thought a lower price was appropriate. While insider selling is sometimes discouraging, it is only a weak signal. We note that the largest single sale was for just 36% of Felicia Norwood’s shares.

Elevance Health insiders have not purchased any shares in the last year. Below is a visual representation of insider transactions (by companies and individuals) over the last 12 months. If you click on the chart, you can see all the individual transactions, including share price, individual, and date!

For those who like to find hidden gems The free A list of small-cap companies with recent insider buying might be just the thing.

Insiders at Elevance Health recently sold shares

There was significant insider selling of Elevance Health stock last quarter. In total, independent director Robert Dixon sold $155,000 worth of shares during that time, and we saw no purchases. Overall, that makes us a little cautious, but it’s not the be-all and end-all.

Insider ownership

Looking at the total insider holdings in a company can help you assess whether they are well aligned with the interests of common shareholders. High insider holdings often lead to company management being more mindful of shareholder interests. Elevance Health insiders own 0.1% of the company, which is currently worth about $154 million based on the current share price. This type of significant insider holding generally increases the chance that the company is being run in the interests of all shareholders.

So what do Elevance Health’s insider transactions mean?

An insider has recently sold shares, but he hasn’t been buying. And even if we look at the last year, we haven’t seen any buying. But since Elevance Health is profitable and growing, that doesn’t worry us too much. It’s good to see high insider ownership, but the insider selling makes us cautious, so it’s definitely worth checking out. FREE Report with analyst forecasts for Elevance Health.

But please note: Elevance Health may not be the best stock to buySo take a look at the free List of interesting companies with high return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulator. Currently, we only consider open market transactions and private disposals of direct holdings, but not derivative transactions or indirect holdings.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.