We wouldn't blame DaVita Inc. (NYSE:DVA) shareholders if they were a little worried about the fact that Joel Ackerman, the CFO & Treasurer recently netted about US$9.9m selling shares at an average price of US$192. That sale reduced their total holding by 34% which is hardly insignificant, but far from the worst we've seen.

DaVita Insider Transactions Over The Last Year

Notably, that recent sale by Joel Ackerman is the biggest insider sale of DaVita shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$198). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 34% of Joel Ackerman's stake.

In the last year DaVita insiders didn't buy any company stock. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does DaVita Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. DaVita insiders own 2.2% of the company, currently worth about US$288m 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 DaVita Insider Transactions Indicate?

Insiders haven't bought DaVita stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since DaVita is profitable and growing, we're not too worried by this. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing DaVita.

Of course DaVita 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.

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.