Lead Independent Director Of Tenet Healthcare Sold 35% Of Their Shares

Some Tenet Healthcare Corporation (NYSE:THC) shareholders may be a little concerned to see that the Lead Independent Director, Joseph Kerrey, recently sold a substantial US$1.2m worth of stock at a price of US$125 per share. That's a big disposal, and it decreased their holding size by 35%, which is notable but not too bad.

View our latest analysis for Tenet Healthcare

Tenet Healthcare Insider Transactions Over The Last Year

The Chairman & CEO, Saumya Sutaria, made the biggest insider sale in the last 12 months. That single transaction was for US$15m worth of shares at a price of US$155 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$128. So it may not tell us anything about how insiders feel about the current share price.

Insiders in Tenet Healthcare didn't buy any shares in the last year. 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

For a common shareholder, it is worth checking how many shares are held by company 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. Tenet Healthcare insiders own about US$141m worth of shares (which is 1.2% 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.

So What Does This Data Suggest About Tenet Healthcare Insiders?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Tenet Healthcare makes money, and is growing profits. 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. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Tenet Healthcare has 4 warning signs (and 2 which are a bit unpleasant) we think you should know about.

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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.