This Insider Has Just Sold Shares In Tenet Healthcare

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$743k worth of stock at a price of US$149 per share. That sale reduced their total holding by 22% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Tenet Healthcare

Over the last year, we can see that the biggest insider sale was by the Chairman & CEO, Saumya Sutaria, for US$15m worth of shares, at about US$155 per share. That means that an insider was selling shares at slightly below the current price (US$160). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 27% of Saumya Sutaria's holding.

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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Tenet Healthcare

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Tenet Healthcare

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Tenet Healthcare insiders own about US$100m worth of shares (which is 0.7% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other 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. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tenet Healthcare. Our analysis shows 3 warning signs for Tenet Healthcare (1 doesn't sit too well with us!) and we strongly recommend you look at these before investing.

But note: Tenet Healthcare may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.