In the last year, many HCA Healthcare, Inc. (NYSE:HCA) insiders sold a substantial stake in the company which may have sparked shareholders’ attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
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In the last twelve months, the biggest single sale by an insider was when the Executive VP & COO, Jon Foster, sold US$5.8m worth of shares at a price of US$369 per share. That means that an insider was selling shares at around the current price of US$365. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it’s not too bad (but it’s still not a positive).
In the last year HCA Healthcare insiders didn’t buy any company stock. 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!
See our latest analysis for HCA Healthcare
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
The last quarter saw substantial insider selling of HCA Healthcare shares. In total, Executive VP & COO Jon Foster sold US$5.8m worth of shares in that time, and we didn’t record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. HCA Healthcare insiders own 1.4% of the company, currently worth about US$1.2b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
An insider hasn’t bought HCA Healthcare stock in the last three months, but there was some selling. And even if we look at the last year, we didn’t see any purchases. But it is good to see that HCA Healthcare is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. While it’s good to be aware of what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, HCA Healthcare has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.
But note: HCA Healthcare may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
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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.