Possible Bearish Signals With GE HealthCare Technologies Insiders Disposing Stock

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, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Over the last year, we can see that the biggest insider sale was by the insider, Kenneth Stacherski, for US$1.6m worth of shares, at about US$83.22 per share. So what is clear is that an insider saw fit to sell at around the current price of US$79.57. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it’s not too bad (but it’s still not a positive).

In total, GE HealthCare Technologies insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for GE HealthCare Technologies

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The last three months saw significant insider selling at GE HealthCare Technologies. Specifically, Controller & Chief Accounting Officer George Newcomb ditched US$185k worth of shares in that time, and we didn’t record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

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. GE HealthCare Technologies insiders own about US$58m worth of shares. That equates to 0.2% 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.