We'd be surprised if HCA Healthcare, Inc. (NYSE:HCA) shareholders haven't noticed that the Senior VP & Chief Information Officer, P. Paslick, recently sold US$113k worth of stock at US$134 per share. However, the silver lining is that the sale only reduced their total holding by 0.7%, so we're hesitant to read anything much into it, on its own.
HCA Healthcare Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the President of American Group, Jon Foster, for US$2.4m worth of shares, at about US$102 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$124. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 18% of Jon Foster's holding.
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 want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like HCA Healthcare better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of HCA Healthcare
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. HCA Healthcare insiders own 1.7% of the company, currently worth about US$724m based on the recent share price. 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 HCA Healthcare Tell Us?
Insiders sold HCA Healthcare shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing HCA Healthcare. At Simply Wall St, we found 2 warning signs for HCA Healthcare that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
When trading HCA Healthcare or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.
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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email firstname.lastname@example.org.