Insiders have been selling Ramsay Health Care shares and 2 others this month

Insiders have been selling the shares of Ramsay Health Care Limited (ASX: RHC) and two others this month. Should you be concerned?

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Insider buying is often regarded as a bullish indicator as few should know a company better than its own directors.

The idea is that if they have the confidence to buy shares, it could be a sign that things are going well and they expect them to appreciate in value.

Conversely, when directors sell shares it is often regarded as a bearish indicator as you'd be unlikely to sell shares if you felt they were about to increase in value.

With that in mind, here are three shares which have recently experienced notable insider selling:

Credit Corp Group Limited (ASX: CCP)

According to a change of director's interest notice, this receivables management company's non-executive director, Donald McLay, has been selling shares on-market this month. Mr McLay has followed up the sale of 15,000 shares in February with the sale of a further 30,000 shares this month through on-market trades. The director received a total of $660,303 or $22.01 per share. I'm not overly concerned by this insider selling as Mr McLay still has a considerable holding totalling 1,466,482 shares.

Orora Ltd (ASX: ORA)

A change of director's interest notice reveals that this packaging company's independent non-executive director and chairman, Christopher Roberts, has sold off more than half of his holding this month. According to the note, Mr Roberts sold a total of 168,269 shares through on-market trades on March 7 and 8, leaving him with a holding of 113,150 shares. The director received an average of approximately $3.21 per share for the sale. No reason was given for the selling, but with the Orora share price trading close to a 52-week low, it isn't a great look.

Ramsay Health Care Limited (ASX: RHC)

Another change of director's interest notice reveals that Ramsay's group finance director, Bruce Soden, has sold 50,000 shares through on-market trades on March 7 and March 8. According to the notice, Mr Soden has sold the shares "primarily for the purpose of satisfying his personal income tax obligations arising in connection with the vesting and exercise of his past LTI awards." The director still has 295,227 shares and 260,287 performance rights.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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