Paula Price Is The Independent Director of DaVita Inc. (NYSE:DVA) And They Just Sold 59% Of Their Shares

By
Simply Wall St
Published
February 17, 2022
NYSE:DVA
Source: Shutterstock

We note that the DaVita Inc. (NYSE:DVA) Independent Director, Paula Price, recently sold US$80k worth of stock for US$114 per share. While that isn't a lot of money, it was a substantial 59% of their holding, so certainly isn't a good sign.

View our latest analysis for DaVita

The Last 12 Months Of Insider Transactions At DaVita

In the last twelve months, the biggest single sale by an insider was when the CFO & Treasurer, Joel Ackerman, sold US$5.0m worth of shares at a price of US$131 per share. That means that an insider was selling shares at around the current price of US$120. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in DaVita didn't buy any shares in 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!

insider-trading-volume
NYSE:DVA Insider Trading Volume February 17th 2022

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Does DaVita Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. DaVita insiders own about US$358m worth of shares (which is 3.2% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About DaVita Insiders?

An insider hasn't bought DaVita 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 DaVita is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of DaVita.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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