Some Stryker Corporation (NYSE:SYK) shareholders may be a little concerned to see that the Independent Director, Ronda Stryker, recently sold a substantial US$84m worth of stock at a price of US$367 per share. However, that sale only accounted for 1.2% of their holding, so arguably it doesn't say much about their conviction.
Stryker Insider Transactions Over The Last Year
In fact, the recent sale by Independent Director Ronda Stryker was not their only sale of Stryker shares this year. They previously made an even bigger sale of -US$100m worth of shares at a price of US$346 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$376. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 1.6% of Ronda Stryker's holding.
In the last year Stryker 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Stryker
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Stryker insiders own 10% of the company, currently worth about US$14b based on the recent share price. 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 Stryker Insiders?
Insiders haven't bought Stryker stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Stryker is profitable and growing, we're not too worried by this. 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. You'd be interested to know, that we found 2 warning signs for Stryker and we suggest you have a look.
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.
