John Nehra Is The Independent Director of DaVita Inc. (NYSE:DVA) And They Just Picked Up 7.3% More Shares
Potential DaVita Inc. (NYSE:DVA) shareholders may wish to note that the Independent Director, John Nehra, recently bought US$356k worth of stock, paying US$71.14 for each share. Although the purchase only increased their holding by 7.3%, it is still a solid purchase in our view.
View 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 means that an insider was happy to buy shares at above the current price of US$65.42. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 25.00k shares for US$1.9m. But they sold 3.02k shares for US$306k. Overall, DaVita insiders were net buyers during the last year. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of DaVita
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. DaVita insiders own about US$73m worth of shares. That equates to 1.2% of the company. 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 Do The DaVita Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest DaVita insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for DaVita you should be aware of, and 1 of them is significant.
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.
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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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