Yahoo Finance UnitedHealth Group Incorporated's (NYSE:UNH) stock dropped 5.4% this week, offering solace to those who sold earlier in the year
Even though UnitedHealth Group Incorporated (NYSE:UNH) has fallen by 5.4% over the past week , insiders who sold US$37m worth of stock over the past year have had less luck. The average selling price of US$500 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for UnitedHealth Group
The Last 12 Months Of Insider Transactions At UnitedHealth Group
In the last twelve months, the biggest single sale by an insider was when the President & COO, Dirk McMahon, sold US$8.0m worth of shares at a price of US$543 per share. So we know that an insider sold shares at around the present share price of US$512. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. 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).
Happily, we note that in the last year insiders paid US$1.0m for 2.24k shares. But insiders sold 74.33k shares worth US$37m. All up, insiders sold more shares in UnitedHealth Group than they bought, over the last year. 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!
I will like UnitedHealth Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insiders At UnitedHealth Group Have Sold Stock Recently
The last three months saw significant insider selling at UnitedHealth Group. In total, insiders dumped US$8.2m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership Of UnitedHealth Group
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. I reckon it's a good sign if insiders own a significant number of shares in the company. UnitedHealth Group insiders own about US$1.6b worth of shares (which is 0.3% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About UnitedHealth Group Insiders?
Insiders sold UnitedHealth Group shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that UnitedHealth Group is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with UnitedHealth Group and understanding it should be part of your investment process.
Of course UnitedHealth Group 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, but not derivative transactions.
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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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