Some Stryker Corporation (NYSE:SYK) shareholders may be a little concerned to see that the Independent Director, Ronda Stryker, recently sold a substantial US$118m worth of stock at a price of US$337 per share. However, that sale only accounted for 2.4% of their holding, so arguably it doesn't say much about their conviction.

The Last 12 Months Of Insider Transactions At Stryker

Notably, that recent sale by Independent Director Ronda Stryker was not the only time they sold Stryker shares this year. Earlier in the year, they fetched US$360 per share in a -US$185m sale. That means that an insider was selling shares at around the current price of US$329. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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.

In the last year Stryker insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Stryker insiders own about US$12b worth of shares (which is 9.2% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Stryker Insider Transactions Indicate?

Insiders sold Stryker shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Stryker is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Stryker.

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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.