President of Humana James Rechtin Buys 299% More Shares

Those following along with Humana Inc. (NYSE:HUM) will no doubt be intrigued by the recent purchase of shares by James Rechtin, President of the company, who spent a stonking US$1.5m on stock at an average price of US$229. That purchase boosted their holding by 299%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

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The Last 12 Months Of Insider Transactions At Humana

In fact, the recent purchase by James Rechtin was the biggest purchase of Humana shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$238 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Humana insider decided to buy shares at close to current prices. James Rechtin was the only individual insider to buy shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Humana

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

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. Insiders own 0.09% of Humana shares, worth about US$26m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Humana Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Humana shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Humana, you should check out this free report on analyst forecasts for the company.

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 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.