We wouldn't blame Stryker Corporation (NYSE:SYK) shareholders if they were a little worried about the fact that Ronda Stryker, the Independent Director recently netted about US$179m selling shares at an average price of US$325. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.8%.
Stryker Insider Transactions Over The Last Year
Notably, that recent sale by Independent Director Ronda Stryker was not the only time they sold Stryker shares this year. They previously made an even bigger sale of -US$182m worth of shares at a price of US$369 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$324. So it may not shed much light on insider confidence at current levels.
In the last year Stryker insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Stryker
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Does Stryker Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Stryker insiders own about US$11b worth of shares (which is 9.2% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Stryker Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Stryker is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Stryker and understanding them should be part of your investment process.
Of course Stryker may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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 of direct interests only, but not derivative transactions or indirect interests.
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