Yahoo Finance Thermo Fisher Scientific Insiders Sold US$2.3m Of Shares Suggesting Hesitancy
The fact that multiple Thermo Fisher Scientific Inc. (NYSE:TMO) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Thermo Fisher Scientific
Thermo Fisher Scientific Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chief Human Resources Officer & Senior VP, Lisa Britt, sold US$2.2m worth of shares at a price of US$613 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$615. 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. We note that the biggest single sale was only 21% of Lisa Britt's holding.
Insiders in Thermo Fisher Scientific didn't buy any shares in the last year. 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!
I will like Thermo Fisher Scientific better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insiders At Thermo Fisher Scientific Have Sold Stock Recently
The last quarter saw substantial insider selling of Thermo Fisher Scientific shares. In total, Chief Human Resources Officer & Senior VP Lisa Britt sold US$2.2m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Does Thermo Fisher Scientific Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Thermo Fisher Scientific insiders own 0.1% of the company, worth about US$273m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Thermo Fisher Scientific Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Thermo Fisher Scientific makes money, and is growing profits. 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 Thermo Fisher Scientific. For example - Thermo Fisher Scientific has 2 warning signs we think you should be aware of.
Of course Thermo Fisher Scientific 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.
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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.
