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Many Centene Corporation (NYSE:CNC) 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 is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Centene
Centene Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive VP & CFO Andrew Asher for US$1.0m worth of shares, at about US$58.14 per share. That implies that an insider found the current price of US$60.37 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
Over the last year, we can see that insiders have bought 21.32k shares worth US$1.3m. On the other hand they divested 20.88k shares, for US$1.6m. In total, Centene insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Centene Insiders Bought Stock Recently
Over the last quarter, Centene insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$1.3m worth of shares. This is a positive in our book as it implies some confidence.
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. We usually like to see fairly high levels of insider ownership. Centene insiders own 0.4% of the company, currently worth about US$122m 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.