Yahoo Finance UnitedHealth Group Insiders Sold US$15m Of Shares Suggesting Hesitancy
Over the past year, many UnitedHealth Group Incorporated (NYSE:UNH) insiders sold a significant stake in the company which may have piqued investors' interest. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for UnitedHealth Group
UnitedHealth Group Insider Transactions Over The Last Year
The Chief Executive Officer of UnitedHealthcare, Brian Thompson, made the biggest insider sale in the last 12 months. That single transaction was for US$12m worth of shares at a price of US$521 each. So we know that an insider sold shares at around the present share price of US$497. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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.
In the last year UnitedHealth Group 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like UnitedHealth Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of UnitedHealth Group
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. UnitedHealth Group insiders own 0.2% of the company, currently worth about US$798m 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 UnitedHealth Group Insiders?
It doesn't really mean much that no insider has traded UnitedHealth Group shares in the last quarter. While we feel good about high insider ownership of UnitedHealth Group, we can't say the same about the selling of shares. While it's good to be aware of 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. Case in point: We've spotted 3 warning signs for UnitedHealth Group you should be aware of, and 1 of these is a bit concerning.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.
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