New Zealand markets closed
  • NZX 50

    11,596.03
    -21.11 (-0.18%)
     
  • NZD/USD

    0.6425
    +0.0045 (+0.71%)
     
  • NZD/EUR

    0.6089
    +0.0054 (+0.89%)
     
  • ALL ORDS

    7,406.30
    +36.90 (+0.50%)
     
  • ASX 200

    7,213.20
    +37.70 (+0.53%)
     
  • OIL

    72.12
    +0.66 (+0.92%)
     
  • GOLD

    1,816.80
    +15.30 (+0.85%)
     
  • NASDAQ

    11,689.44
    +51.95 (+0.45%)
     
  • FTSE

    7,476.63
    +4.46 (+0.06%)
     
  • Dow Jones

    33,793.31
    +11.83 (+0.04%)
     
  • DAX

    14,370.72
    +106.16 (+0.74%)
     
  • Hang Seng

    19,900.87
    +450.64 (+2.32%)
     
  • NIKKEI 225

    27,901.01
    +326.58 (+1.18%)
     
  • NZD/JPY

    87.5860
    +0.4870 (+0.56%)
     

Insiders at Thermo Fisher Scientific Inc. (NYSE:TMO) sold US$4.7m worth of stock, possibly indicating weakness in the future

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. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. 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 do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Thermo Fisher Scientific

Thermo Fisher Scientific Insider Transactions Over The Last Year

The Executive VP & COO, Michel Lagarde, made the biggest insider sale in the last 12 months. That single transaction was for US$3.3m worth of shares at a price of US$542 each. That means that an insider was selling shares at around the current price of US$507. 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.

Thermo Fisher Scientific insiders didn't buy any shares over the last year. 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!

insider-trading-volume
insider-trading-volume

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Thermo Fisher Scientific Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Thermo Fisher Scientific shares. In total, Independent Director Jim Manzi dumped US$486k 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?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Thermo Fisher Scientific insiders own about US$326m worth of shares (which is 0.2% of the company). 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. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Thermo Fisher Scientific you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here