Manuel Kadre, insider at Bright Health Gr (NYSE:BHG), made a large insider buy on September 8, according to a new SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Kadre purchased 100,000 shares of Bright Health Gr at a price of $9.59 per share. The total transaction amounted to $959,000.
Following the transaction, Kadre now owns 50,000 shares of the company, worth $505,999.
Bright Health Gr shares are trading up 4.87% at $10.12 at the time of this writing on Monday morning.
The Importance of Insider Transactions
Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.