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Trade Alert: Chamath Palihapitiya At Clover Health Investments, Corp. (NASDAQ:CLOV), Has Just Spent US$10.0m Buying 6.1% More Shares

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  • CLOV

Those following along with Clover Health Investments, Corp. (NASDAQ:CLOV) will no doubt be intrigued by the recent purchase of shares by insider Chamath Palihapitiya, who spent a stonking US$10.0m on stock at an average price of US$5.75. While that only increased their holding size by 6.1%, it is still a big swing by our standards.

See our latest analysis for Clover Health Investments

Clover Health Investments Insider Transactions Over The Last Year

Notably, that recent purchase by Chamath Palihapitiya is the biggest insider purchase of Clover Health Investments shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$5.08. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Chamath Palihapitiya was the only individual insider to buy shares in the last twelve months.

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!

insider-trading-volume
insider-trading-volume

Clover Health Investments 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.

Insider Ownership of Clover Health Investments

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Clover Health Investments insiders own 29% of the company, worth about US$692m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Clover Health Investments Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Clover Health Investments. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Clover Health Investments. Case in point: We've spotted 2 warning signs for Clover Health Investments you should be aware of.

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.

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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