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$97m selling shares at an average price of US$312. However, that sale only accounted for 2.0% of their holding, so arguably it doesn't say much about their conviction.

Stryker Insider Transactions Over The Last Year

In fact, the recent sale by Independent Director Ronda Stryker was not their only sale of Stryker shares this year. They previously made an even bigger sale of -US$185m worth of shares at a price of US$360 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$305. So it may not shed much light on insider confidence at current levels.

Stryker insiders didn't buy any shares over the last year. 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!

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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. A high insider ownership often makes company leadership more mindful of shareholder interests. Stryker insiders own 9.3% of the company, currently worth about US$11b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Stryker Insider Transactions Indicate?

Insiders haven't bought Stryker stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Stryker is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision.

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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.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.