We’d be surprised if Select Medical Holdings Corporation (NYSE:SEM) shareholders haven’t noticed that the Senior VP, Scott Romberger, recently sold US$161k worth of stock at US$17.26 per share. On the bright side, that sale was only-6% of their holding, so we doubt it’s very meaningful, on its own.
Select Medical Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Co-Founder & Vice Chairman Rocco Ortenzio bought US$4.3m worth of shares at a price of US$14.25 per share. That means that an insider was happy to buy shares at around the current price of US$17.17. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Select Medical Holdings share holders is that an insider was buying at near the current price. Rocco Ortenzio was the only individual insider to buy shares in the last twelve months.
The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Does Select Medical Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It’s great to see that Select Medical Holdings insiders own 20% of the company, worth about US$468m. 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 Do The Select Medical Holdings Insider Transactions Indicate?
Insiders haven’t bought Select Medical Holdings stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. And insider ownership remains quite considerable. So we’re not too bothered by recent selling. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Select Medical Holdings.
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.
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