Brookdale Senior Living President and CFO Mark Ohlendorf last week cut his stake in the Brentwood-based senior living facilities company by a third, padding his bank account by $6.8 million. The series of sales came three weeks after Brookdale (Ticker: BKD) completed its acquisition of Emeritus and a week after former Emeritus boss Granger Cobb wrapped up the sale of $17 million worth of stock.
Also selling (again) last week was Director Mark Schulte, who has trimmed his Brookdale holdings by a third in recent weeks. Schulte's latest sales — view the details here and here — netted him about $2.7 million.
Sam Hazen, president of operations at HCA Holdings, on Monday joined a number of his executive peers in cashing in on the gains posted of late by the hospital giant's shares (Ticker: HCA). The veteran HCA officer — he's been with the company since 1994 — exercised more than 19,000 stock options and then sold the resulting shares. His profit on the transactions topped $1.2 million, lifting to almost $23 million the gains banked by HCA execs over the past week. We're thinking there's more to come on this front.
July was a very good month for HCA Holdings investors, with shares of the industry-leading hospital operator climbing more than 16 percent as the company and its peers reported surprisingly good earnings. So it's no surprise to see insiders cashing in a good number of their long-term compensation chips. The latest to do so were HCA Holdings Group President Jon Foster and President of Clinical Services and Chief Medical Officer Jonathan Perlin.
Foster on Friday exercised about 60,000 options that would have expired in 2017 and then sold the resulting shares. His profit on the deals came to more than $3.6 million. Perlin, meanwhile, booked a gain of $1.2 million after he exercised 20,000 options and sold the resulting stock.
The sales by Perlin and Foster came on the heels of similar big transactions by a number of their HCA colleagues as well as the CFO of LifePoint Hospitals. Since last Friday, HCA shares (Ticker: HCA) have traded sideways, closing Tuesday at $66.80.
A quintet of local hospital executives have cashed in to the tune of $22 million on the recent run-up in their companies' shares.
Four top officials at HCA Holdings and the CFO of LifePoint Hospitals last week exercised a large amount of stock options on the heels of their employers reporting strong Q2 results that were aided by health insurance reforms (LifePoint's report is here, HCA's here) and lifted their stocks to all-time highs. Their sales are the latest in what has been a steady stream in 2014 of Nashville-area insiders lightening their holdings as the market has churned higher.
Here are the numbers from last week:
• Chief Ethics Officer Alan Yuspeh on Wednesday exercised more than 153,000 options that would have expired between next January and early 2017. By selling the resulting shares, he booked a net gain of more than $8.9 million.
• Chief Development Officer Joe Sowell was right with Yuspeh on Wednesday, exercising 100,000 options that would have expired all the way out in 2020 and then selling the resulting. When all was done, Sowell — a former partner at Waller who joined HCA in 2009 — had booked a profit of more than $5.8 million.
• Senior Vice President of Human Resources John Steele fattened his bank account by more than $1.8 million after exercising 30,000 options and selling the resulting shares.
• Senior VP of Finance David Anderson also was a seller, exercising about 22,500 options and unloading the resulting stock. His take on those transactions: $1.5 million.
• Over at LifePoint, CFO Leif Murphy is the only senior exec to have cashed in some chips of late. On Thursday, he exercised 100,000 stock options and sold the resulting shares for a profit of almost $3.6 million.
A stock trading plan set up last month on behalf of Ryman Hospitality Properties Chairman, President and CEO Colin Reed was hard at work this week. After generating profits of about $1.1 million Friday and Monday, the plan on Tuesday and Wednesday exercised another 50,000 options and then sold the resulting shares. Reed's profit on those transactions topped $1.5 million. Ryman shares (Ticker: RHP) closed Thursday at $49.27, less than 2 percent their recent highs.
It hasn't escaped Ryman Hospitality Properties Chairman, President and CEO Colin Reed that shares of the hotel real estate investment trust have been on a nice run from $42 to $50 (Ticker: RHP) over the past three months. On Friday and Monday, a trading plan set up last month by Reed exercised 50,000 stock options and sold the resulting shares. The profit on those transactions came to almost $1.1 million.
Juan Vallarino, HCA senior VP of employer and payer engagement, topped $1 million in stock option profits this month, exercising 15,000 options on both June 5 and June 20. Vallarino sold the resulting shares and booked more than $1.1 million on the moves. Shares of HCA (Ticker: HCA) have climbed 22 percent during the last six months and are up 51 percent over the past year.
Delek US Holdings director Carlos Jorda exercised a set of stock options Friday, buying nearly 11,500 shares for almost $97,500. After forfeiting nearly 700 shares to cover some of his costs, Jorda sold the remaining shares and booked a profit of nearly $227,000.
Shares of Delek (Ticker: DK) were up 8 cents to $31.18 Tuesday.
Genesco Vice President and Chief Accounting Officer Paul Williams this week cut his stake in the shoe and hat retailer by 40 percent by selling almost 10,000 of his shares. Williams' proceeds from the sale came to nearly $750,000. Shares of Genesco (Ticker: GCO) are up about 5 percent year to date.
Shares of hospital giant HCA Holdings (Ticker: HCA) have been on a nice run of late, climbing 13 percent in the last two months and 35 percent over the past year. Juan Vallarino, the company's senior VP of employer and payer engagement, took advantage of that this week by exercising 15,000 stock options that would have expired in 2021 and then selling the resulting shares. His profit on those moves topped $565,000.
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