Have HCA Healthcare, Inc. (NYSE:HCA) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
July 25, 2021
NYSE:HCA
Source: Shutterstock

Anyone interested in HCA Healthcare, Inc. (NYSE:HCA) should probably be aware that a company insider, Kathryn Torres, recently divested US$252k worth of shares in the company, at an average price of US$252 each. However, the silver lining is that the sale only reduced their total holding by 5.9%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for HCA Healthcare

The Last 12 Months Of Insider Transactions At HCA Healthcare

Over the last year, we can see that the biggest insider sale was by the Senior VP & General Counsel, Robert Waterman, for US$30m worth of shares, at about US$203 per share. That means that an insider was selling shares at slightly below the current price (US$248). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 53% of Robert Waterman's holding.

In the last year HCA Healthcare insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:HCA Insider Trading Volume July 25th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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 HCA Healthcare insiders own 1.6% of the company, worth about US$1.3b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About HCA Healthcare Insiders?

Insiders haven't bought HCA Healthcare stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that HCA Healthcare is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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, HCA Healthcare has 2 warning signs (and 1 which shouldn't be ignored) 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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