Theodore Samuels Is The Independent Director of Centene Corporation (NYSE:CNC) And They Just Picked Up 50% More Shares
Those following along with Centene Corporation (NYSE:CNC) will no doubt be intrigued by the recent purchase of shares by Theodore Samuels, Independent Director of the company, who spent a stonking US$503k on stock at an average price of US$71.88. That purchase boosted their holding by 50%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
Check out our latest analysis for Centene
Centene Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Christopher Coughlin for US$976k worth of shares, at about US$81.37 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$72.74). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. 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 Centene insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Centene
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Centene insiders own 0.7% of the company, currently worth about US$266m 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.
What Might The Insider Transactions At Centene Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Centene. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Centene. You'd be interested to know, that we found 1 warning sign for Centene and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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