In the last year, many HCA Healthcare, Inc. (NYSE:HCA) insiders sold a substantial stake in the company which may have sparked shareholders' attention. 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, 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for HCA Healthcare

The Last 12 Months Of Insider Transactions At HCA Healthcare

The insider, Michael Cuffe, made the biggest insider sale in the last 12 months. That single transaction was for US$2.0m worth of shares at a price of US$317 each. That means that an insider was selling shares at around the current price of US$314. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

HCA 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. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap 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, Senior VP and Chief Ethics & Compliance Officer Kathleen Whalen dumped US$528k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. HCA Healthcare insiders own 1.4% of the company, currently worth about US$1.1b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About HCA Healthcare Insiders?

An insider sold HCA Healthcare shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, HCA Healthcare makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for HCA Healthcare you should know about.