Insiders At Parker-Hannifin Sold US$15m In Stock, Alluding To Potential Weakness

In the last year, many Parker-Hannifin Corporation (NYSE:PH) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

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.

Our free stock report includes 1 warning sign investors should be aware of before investing in Parker-Hannifin. Read for free now.

The Last 12 Months Of Insider Transactions At Parker-Hannifin

In the last twelve months, the biggest single sale by an insider was when the VP, General Counsel & Secretary, Joseph Leonti, sold US$2.5m worth of shares at a price of US$631 per share. So we know that an insider sold shares at around the present share price of US$598. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Parker-Hannifin insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Parker-Hannifin

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Parker-Hannifin Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Parker-Hannifin. In total, Vice President of Chief Technology & Innovation Officer Mark Czaja dumped US$267k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Parker-Hannifin Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Parker-Hannifin insiders own 0.5% of the company, worth about US$377m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Parker-Hannifin Insider Transactions Indicate?

An insider sold Parker-Hannifin shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Parker-Hannifin is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. In terms of investment risks, we've identified 1 warning sign with Parker-Hannifin and understanding this should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

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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.