UnitedHealth Group Insiders Sell US$6.6m Of Stock, Possibly Signalling Caution

Many UnitedHealth Group Incorporated (NYSE:UNH) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for UnitedHealth Group

The Last 12 Months Of Insider Transactions At UnitedHealth Group

Over the last year, we can see that the biggest insider sale was by the CEO & Non-Independent Director, Andrew Witty, for US$3.0m worth of shares, at about US$487 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$522. 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. It is worth noting that this sale was only 6.6% of Andrew Witty's holding.

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

I will like UnitedHealth Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does UnitedHealth Group 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. I reckon it's a good sign if insiders own a significant number of shares in the company. UnitedHealth Group insiders own about US$1.6b worth of shares (which is 0.3% 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 UnitedHealth Group Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of UnitedHealth Group, we can't say the same about the selling of shares. Of course, the future is what matters most. So if you are interested in UnitedHealth Group, you should check out this free report on analyst forecasts for the company.

Of course UnitedHealth Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.