Insiders at Thermo Fisher Scientific Inc. (NYSE:TMO) sold US$1.3m worth of stock, possibly indicating weakness in the future
Over the past year, many Thermo Fisher Scientific Inc. (NYSE:TMO) insiders sold a significant stake in the company which may have piqued investors' interest. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
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 Independent Director, Jim Manzi, sold US$585k worth of shares at a price of US$585 per share. So what is clear is that an insider saw fit to sell at around the current price of US$562. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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 Thermo Fisher Scientific insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Thermo Fisher Scientific Have Sold Stock Recently
The last three months saw significant insider selling at Thermo Fisher Scientific. In total, Independent Director Jim Manzi dumped US$585k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership Of Thermo Fisher Scientific
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Thermo Fisher Scientific insiders own 0.1% of the company, worth about US$310m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Thermo Fisher Scientific Tell Us?
An insider hasn't bought Thermo Fisher Scientific stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. 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. In terms of investment risks, we've identified 2 warning signs with Thermo Fisher Scientific and understanding these should be part of your investment process.
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, but not derivative transactions.
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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.
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