Insiders May Be Concerned about Gloomy Outlook of These Companies; Should You be Worried too?

Let’s now examine the insider selling activity at Healthequity Inc. (NASDAQ:HQY), a provider of solutions for managing healthcare accounts and other related activities. Director Frank T. Medici sold-off his entire stake of 12,500 shares at a weighted average price of $29.56. Nonetheless, he still holds indirect ownership of 14,269 shares via Berkley Capital Investors LP. The insider trading activity at the company was quite prominent last week as well, as directors Michael O. Leavitt and Ian Sacks reduced their holdings significantly. The stock has greatly outperformed the broader market this year, with its shares gaining more than 17% since the start of 2015. Healthequity’s stong financial figures embedded in its fiscal 2016 second quarter report have surely lured some investors to pour capital into the stock. The company’s revenue increased 46% year-over-year to $30.5 million, while its net income grew by the same 46% to $4.4 million. Jim Simons’ Renaissance Technologies disclosed a stake of 180,700 shares in Healthequity Inc. (NASDAQ:HQY) via its latest 13F filing.

Finally, we will look into the trading activity at Ashland Inc. (NYSE:ASH). Theodore L. Harrys, who acted as Senior Vice President from July, 2011 until April, 2015, unloaded 11,277 shares at prices between $108.73 and $108.77, reducing his stake to 13,098 shares. Even though Theodore Harrys is a former executive of Ashland, he still might be looking for the right time to sell his remaining stake. The stock has been on an uptrend since late-August, but it is hard to predict where it will be heading from here. Just recently, the management of Ashland revealed its plans to separate its business into two entities, which are considered as a value-creating move by Credit Suisse analysts. Credit Suisse also outlined that the potential sum-of-parts valuation of the entire company is estimated at $153 per share over the next 12 to 18 months, which represents an upside potential of more than 40%. Leon Cooperman’s Omega Advisors represents the largest equity holder of Ashland Inc. (NYSE:ASH) within our database, holding 1.08 million shares as of June 30.

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