Yahoo Finance Thermo Fisher Scientific Inc. (NYSE:TMO) insiders who sold US$1.3m worth of stock earlier this year are probably glad they did so as market cap slides to US$206b
By selling US$1.3m worth of Thermo Fisher Scientific Inc. (NYSE:TMO) stock at an average sell price of US$583 over the last year, insiders seemed to have made the most of their holdings. After the stock price dropped 8.1% last week, the company's market value declined by US$18b, but insiders were able to mitigate their losses.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See 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$533. While we don't usually like to see insider selling, it's more concerning if the sales take place 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.
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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders At Thermo Fisher Scientific Have Sold Stock Recently
Over the last three months, we've seen significant insider selling at Thermo Fisher Scientific. In total, Independent Director Jim Manzi sold US$585k 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. We usually like to see fairly high levels of insider ownership. Thermo Fisher Scientific insiders own about US$294m worth of shares (which is 0.1% 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 Does This Data Suggest About Thermo Fisher Scientific Insiders?
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. 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. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Thermo Fisher Scientific has 2 warning signs and it would be unwise to ignore them.
But note: Thermo Fisher Scientific may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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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