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Possible Bearish Signals With Clover Health Investments Insiders Disposing Stock

Simply Wall St · 6d ago

The fact that multiple Clover Health Investments, Corp. (NASDAQ:CLOV) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Clover Health Investments

In the last twelve months, the biggest single purchase by an insider was when Co-Founder & Executive Chairman Vivek Garipalli bought US$999k worth of shares at a price of US$2.24 per share. That means that an insider was happy to buy shares at around the current price of US$2.41. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

Over the last year, we can see that insiders have bought 473.48k shares worth US$1.1m. But they sold 327.50k shares for US$1.2m. All up, insiders sold more shares in Clover Health Investments than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Clover Health Investments

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NasdaqGS:CLOV Insider Trading Volume January 4th 2026

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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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Clover Health Investments insiders own 21% of the company, worth about US$263m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Clover Health Investments Insiders?

The fact that there have been no Clover Health Investments insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Clover Health Investments, we can't say the same about the selling of shares. Of course, the future is what matters most. So if you are interested in Clover Health Investments, you should check out this free report on analyst forecasts for the company.

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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.