Some McKesson Company (NYSE: MCK) Shareholders may be a little worried that Executive Vice President and Chief Human Resources Officer Tracy Faber recently sold a substantial US $ 1.9 million for US $ 223 per action. This has reduced their participation by a very large 100%, which undoubtedly implies a strong desire to reallocate capital.
See our latest analysis for McKesson
McKesson Insider Trading Over the Past Year
Notably, this recent sale by Tracy Faber is the biggest insider sale of McKesson shares we’ve seen in the past year. This means that an insider was selling shares for a lower price than the current price (US $ 226). We generally consider this to be negative if insiders sold, especially if they did so below the current price, as this implies that they considered a lower price to be reasonable. However, while insider selling can be daunting at times, this is only a weak signal. It should be noted that this sale concerned 100% of Tracy Faber’s stake.
Tracy Faber has sold 8.97,000 shares in the past 12 months at an average price of US $ 220. The chart below shows insider trading (by businesses and individuals) over the past year. If you click on the chart, you can see all of the individual trades including the stock price, individual and date!
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McKesson Insider Property
Looking at the total insider stakes in a company can help you determine if they are aligned with common shareholders. We generally like to see fairly high levels of insider ownership. McKesson insiders own about $ 21 million in stock. This equates to 0.06% of the business. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.
So what does this data suggest about McKesson Insiders?
An insider recently sold stocks, but they didn’t buy. Looking at the past twelve months, our data shows no insider buying. While the insiders own stocks, they don’t own a bunch, and they’ve sold. We practice some caution before buying! So these insider trading can help us build a thesis on the stock, but it’s also worth knowing the risks this company faces. Every business has risks, and we have spotted 2 warning signs for McKesson you should know.
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For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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