We’d be surprised if TechnipFMC plc (NYSE:FTI) shareholders haven’t noticed that the Executive VP & CFO, Maryann Mannen, recently sold US$302k worth of stock at US$20.84 per share. However, the silver lining is that the sale only reduced their total holding by 4.6%, so we’re hesitant to read anything much into it, on its own.
View our latest analysis for TechnipFMC
TechnipFMC Insider Transactions Over The Last Year
Chairman of the Board & CEO Douglas Pferdehirt made the biggest insider purchase in the last 12 months. That single transaction was for US$960k worth of shares at a price of US$19.20 each. So it’s clear an insider wanted to buy, at around the current price, which is US$20.94. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. The good news for TechnipFMC share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 53.00k shares worth US$1.0m. On the other hand they divested 14500 shares, for US$302k. Overall, TechnipFMC insiders were net buyers last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
TechnipFMC is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does TechnipFMC Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. TechnipFMC insiders own about US$47m worth of shares. That equates to 0.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At TechnipFMC Tell Us?
The stark truth for TechnipFMC is that there has been more insider selling than insider buying in the last three months. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So the recent selling doesn’t worry us too much. Of course, the future is what matters most. So if you are interested in TechnipFMC, you should check out this free report on analyst forecasts for the company.
But note: TechnipFMC 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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