We wouldn't blame UnitedHealth Group Incorporated (NYSE:UNH) shareholders if they were a little worried about the fact that Richard Burke, the Lead Independent Director recently netted about US$5.9m selling shares at an average price of US$237. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.5%.
The Last 12 Months Of Insider Transactions At UnitedHealth Group
Notably, that recent sale by Richard Burke is the biggest insider sale of UnitedHealth Group shares that we've seen in the last year. That means that even when the share price was below the current price of US$245, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 1.5%of Richard Burke's holding.
In the last twelve months insiders purchased 28430 shares for US$6.6m. But insiders sold 126753 shares worth US$31m. All up, insiders sold more shares in UnitedHealth Group than they bought, over the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
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 0.6% of the company, currently worth about US$1.5b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About UnitedHealth Group Insiders?
Unfortunately, there has been more insider selling of UnitedHealth Group stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, UnitedHealth Group makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Of course, the future is what matters most. So if you are interested in UnitedHealth Group, you should check out this free report on analyst forecasts for the company.
But note: UnitedHealth Group 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.