This Insider Has Just Sold Shares In Chemed

Some Chemed Corporation (NYSE:CHE) shareholders may be a little concerned to see that the CEO, President & Director, Kevin McNamara, recently sold a substantial US$2.3m worth of stock at a price of US$568 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.6%.

Check out our latest analysis for Chemed

Chemed Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, David Williams, for US$3.5m worth of shares, at about US$584 per share. So what is clear is that an insider saw fit to sell at around the current price of US$560. 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).

Chemed insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Chemed Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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 Chemed insiders own 1.7% of the company, worth about US$145m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Chemed Tell Us?

Insiders sold Chemed shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Chemed is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Chemed has 1 warning sign we think you should be aware of.

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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.

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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.