Tenet Healthcare Executive VP & Chief Operating Officer Lisa Foo Sells 28% Of Holding

Some Tenet Healthcare Corporation (NYSE:THC) shareholders may be a little concerned to see that the Executive VP & Chief Operating Officer, Lisa Foo, recently sold a substantial US$1.4m worth of stock at a price of US$180 per share. That's a big disposal, and it decreased their holding size by 28%, which is notable but not too bad.

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Tenet Healthcare Insider Transactions Over The Last Year

The insider, R. Ramsey, made the biggest insider sale in the last 12 months. That single transaction was for US$1.9m worth of shares at a price of US$162 each. That means that even when the share price was below the current price of US$180, an insider wanted to cash in some shares. 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. We note that the biggest single sale was 65% of R. Ramsey's holding.

Tenet Healthcare insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Tenet Healthcare

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Does Tenet Healthcare Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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 0.8% of the company, currently worth about US$134m 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.

So What Does This Data Suggest About Tenet Healthcare Insiders?

Insiders sold Tenet Healthcare shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Tenet Healthcare (2 shouldn't be ignored!) and we strongly recommend you look at them before investing.

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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.