Some Tenet Healthcare Corporation (NYSE:THC) shareholders may be a little concerned to see that the Independent Director, Christopher Lynch, recently sold a substantial US$715k worth of stock at a price of US$89.60 per share. That's a big disposal, and it decreased their holding size by 42%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At Tenet Healthcare

In the last twelve months, the biggest single sale by an insider was when the EVP, Chief Administrative Officer, Thomas Arnst, sold US$1.5m worth of shares at a price of US$73.80 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$91.17. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 100% of Thomas Arnst's holding.

In the last year Tenet Healthcare insiders didn't buy any company stock. 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!

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Does Tenet Healthcare 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Tenet Healthcare insiders own about US$146m worth of shares (which is 1.6% 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 Tenet Healthcare Insiders?

Insiders haven't bought Tenet Healthcare stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Tenet 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 4 warning signs for Tenet Healthcare (of which 2 shouldn't be ignored!) you should know about.

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.