Trade Alert: Executive VP & President of Commercial Health Benefits Of Elevance Health Charles Kendrick Has Sold Stock

We wouldn't blame Elevance Health, Inc. (NYSE:ELV) shareholders if they were a little worried about the fact that Charles Kendrick, the Executive VP & President of Commercial Health Benefits recently netted about US$1.4m selling shares at an average price of US$396. That's a big disposal, and it decreased their holding size by 40%, which is notable but not too bad.

View our latest analysis for Elevance Health

The Last 12 Months Of Insider Transactions At Elevance Health

The Executive VP & President of Government Health Benefits, Felicia Norwood, made the biggest insider sale in the last 12 months. That single transaction was for US$6.8m worth of shares at a price of US$535 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$411. So it is hard to draw any strong conclusion from it.

In the last year Elevance Health insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Elevance Health insiders own about US$112m worth of shares (which is 0.1% 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.

What Might The Insider Transactions At Elevance Health Tell Us?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But since Elevance Health 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 these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Elevance Health has 1 warning sign we think you should be aware of.

Of course Elevance Health may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.