We'd be surprised if Tenet Healthcare Corporation (NYSE:THC) shareholders haven't noticed that the Independent Director, Richard Fisher, recently sold US$400k worth of stock at US$66.65 per share. The eyebrow raising move amounted to a reduction of 49% in their holding.
Check out our latest analysis for Tenet Healthcare
Tenet Healthcare Insider Transactions Over The Last Year
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 what is clear is that an insider saw fit to sell at around the current price of US$68.00. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last year Tenet Healthcare insiders didn't buy any company stock. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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$109m 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 Do The Tenet Healthcare Insider Transactions Indicate?
An insider sold Tenet Healthcare shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. 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. Case in point: We've spotted 3 warning signs for Tenet Healthcare you should be aware of, and 1 of them doesn't sit too well with us.
Of course Tenet Healthcare may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
