We wouldn't blame Anthem, Inc. (NYSE:ANTM) shareholders if they were a little worried about the fact that Peter Haytaian, the Executive VP and President of Commercial & Specialty Business Division recently netted about US$2.6m selling shares at an average price of US$270. That's a big dump, and it decreased their holding size by 25%, which is notable but not too bad.
Anthem Insider Transactions Over The Last Year
Notably, that recent sale by Peter Haytaian is the biggest insider sale of Anthem shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$269. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In the last twelve months insiders netted US$3.5m for 12762 shares sold. Anthem insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Anthem insiders own about US$82m worth of shares. That equates to 0.1% 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.
What Might The Insider Transactions At Anthem Tell Us?
An insider sold stock recently, but they haven't been buying. And even if we look to the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Anthem.
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, but not derivative transactions.
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