Some Option Care Health, Inc. (NASDAQ:OPCH) shareholders may be a little concerned to see that the Chief Human Resources & Chief Diversity Officer, Michael Bavaro, recently sold a substantial US$541k worth of stock at a price of US$33.26 per share. That diminished their holding by a very significant 94%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for Option Care Health

Option Care Health Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Director, Elizabeth Betten, for US$1.5m worth of shares, at about US$31.09 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$33.96. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 66% of Elizabeth Betten's holding.

In total, Option Care Health insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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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$41m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Option Care Health Insider Transactions Indicate?

An insider hasn'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. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Option Care Health. At Simply Wall St, we found 2 warning signs for Option Care Health that deserve your attention before buying any shares.

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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.

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.