Those following along with Fortive Corporation (NYSE:FTV) will no doubt be intrigued by the recent purchase of shares by Alan Spoon, Independent Chairman of the Board of the company, who spent a stonking US$1.0m on stock at an average price of US$58.25. Not only is that a big swing, but it increased their holding size by 29%, which is definitely great to see.
The Last 12 Months Of Insider Transactions At Fortive
Over the last year, we can see that the biggest insider sale was by the insider, Steven Rales, for US$253m worth of shares, at about US$73.74 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$60.78. So it is hard to draw any strong conclusion from it.
All up, insiders sold more shares in Fortive than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Insider Ownership of Fortive
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Fortive insiders own about US$559m worth of shares (which is 2.6% 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.
What Might The Insider Transactions At Fortive Tell Us?
It is good to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Fortive and understanding these should be part of your investment process.
But note: Fortive 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.
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.