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Over the last year, a good number of insiders have significantly increased their holdings in HCA Healthcare, Inc. (NYSE:HCA). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for HCA Healthcare
HCA Healthcare Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Founder & Chairman Emeritus Thomas Frist for US$19m worth of shares, at about US$215 per share. We do like to see buying, but this purchase was made at well below the current price of US$240. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 91.70k shares for US$19m. On the other hand they divested 59.56k shares, for US$14m. In total, HCA Healthcare insiders bought more than they sold 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!
HCA Healthcare is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
HCA Healthcare Insiders Are Selling The Stock
The last quarter saw substantial insider selling of HCA Healthcare shares. In total, insiders sold US$5.9m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. HCA Healthcare insiders own about US$887m worth of shares (which is 1.3% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At HCA Healthcare Tell Us?
Insiders haven't bought HCA Healthcare stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So the recent selling doesn't worry us. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing HCA Healthcare. When we did our research, we found 3 warning signs for HCA Healthcare (1 is a bit unpleasant!) that we believe deserve your full attention.