Yahoo Finance A DaVita Inc. (NYSE:DVA) insider increased their holdings by 28% last year
Insiders were net buyers of DaVita Inc.'s (NYSE:DVA ) stock during the past year. That is, insiders bought more stock than they sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for DaVita
The Last 12 Months Of Insider Transactions At DaVita
Over the last year, we can see that the biggest insider purchase was by Chief Operating Officer of Kidney Care Michael Staffieri for US$1.6m worth of shares, at about US$77.70 per share. That implies that an insider found the current price of US$85.68 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the DaVita insider decided to buy shares at close to current prices. Michael Staffieri was the only individual insider to buy during the last year.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
DaVita is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
DaVita Insiders Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at DaVita. We can see that Chief Operating Officer of Kidney Care Michael Staffieri paid US$1.6m for shares in the company. But Independent Director Barbara Desoer sold shares worth US$226k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Does DaVita Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.2% of DaVita shares, worth about US$95m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About DaVita Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of DaVita we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 1 warning sign for DaVita you should know about.
But note: DaVita may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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, but not derivative transactions.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
