We’d be surprised if PerkinElmer, Inc. (NYSE:PKI) shareholders haven’t noticed that the Lead Director, Alexis Michas, recently sold US$165k worth of stock at US$82.56 per share. However, the silver lining is that the sale only reduced their total holding by-3.3%, so we’re hesitant to read anything much into it, on its own.
PerkinElmer Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Patrick Sullivan, sold US$816k worth of shares at a price of US$81.64 per share. That means that even when the share price was below the current price of US$83.71, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. This single sale was just 26.5% of Patrick Sullivan’s stake.
We note that in the last year insiders divested 24806 shares for a total of US$2.1m. In the last year PerkinElmer insiders didn’t buy any company stock. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Does PerkinElmer 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. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 0.9% of PerkinElmer shares, worth about US$80m. 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 PerkinElmer Tell Us?
An insider hasn’t bought PerkinElmer stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn’t show any insider buying. But it is good to see that PerkinElmer is growing earnings. While insiders do own shares, they don’t own a heap, and they have been selling. So we’d only buy after careful consideration. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
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