Possible Bearish Signals With GE HealthCare Technologies Insiders Disposing Stock
In the last year, many GE HealthCare Technologies Inc. (NASDAQ:GEHC) insiders sold a substantial stake in the company which may have sparked shareholders’ attention. 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, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
Although we don’t think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for GE HealthCare Technologies
In the last twelve months, the biggest single sale by an insider was when the insider, Kenneth Stacherski, sold US$1.6m worth of shares at a price of US$83.22 per share. So what is clear is that an insider saw fit to sell at around the current price of US$81.24. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.
Over the last year we saw more insider selling of GE HealthCare Technologies shares, than buying. You can see a visual depiction of insider transactions (by companies and 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!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
The last three months saw significant insider selling at GE HealthCare Technologies. In total, insider Philip Rackliffe dumped US$79k 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.
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. GE HealthCare Technologies insiders own about US$50m worth of shares. That equates to 0.1% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
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