Insiders At GE HealthCare Technologies Sold US$2.1m In Stock, Alluding To Potential Weakness

Many GE HealthCare Technologies Inc. (NASDAQ:GEHC) insiders ditched their stock over the past year, which may be of interest to the company’s shareholders. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for GE HealthCare Technologies

The insider, Kenneth Stacherski, made the biggest insider sale in the last 12 months. That single transaction was for US$1.6m worth of shares at a price of US$83.22 each. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$86.99. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. It is worth noting that this sale was 100% of Kenneth Stacherski’s holding.

All up, insiders sold more shares in GE HealthCare Technologies 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!

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The last quarter saw substantial insider selling of GE HealthCare Technologies shares. Specifically, insiders ditched US$1.8m worth of shares in that time, and we didn’t record any purchases whatsoever. Overall this makes us a bit cautious, but it’s not the be all and end all.

Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that GE HealthCare Technologies insiders own 0.1% of the company, worth about US$52m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.