Some Tenet Healthcare Corporation (NYSE:THC) shareholders may be a little concerned to see that the Executive VP & Chief Information Officer, Paola Arbour, recently sold a substantial US$1.8m worth of stock at a price of US$96.96 per share. That sale reduced their total holding by 38% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Tenet Healthcare
Notably, that recent sale by Paola Arbour is the biggest insider sale of Tenet Healthcare shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$98.68, an insider wanted to cash in some shares. 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. This single sale was just 38% of Paola Arbour's stake.
Tenet Healthcare insiders didn't buy any shares over 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!
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Does Tenet Healthcare Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Tenet Healthcare insiders own 1.7% of the company, worth about US$171m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Tenet Healthcare Tell Us?
Insiders haven't bought Tenet Healthcare stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Tenet Healthcare is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing 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. To that end, you should learn about the 4 warning signs we've spotted with Tenet Healthcare (including 2 which are concerning).
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 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.