We’d be surprised if FMC Corporation (NYSE:FMC) shareholders haven’t noticed that the VP, Corporate Controller & Chief Accounting Officer, Nicholas Pfeiffer, recently sold US$104k worth of stock at US$104 per share. However, the silver lining is that the sale only reduced their total holding by 7.2%, so we’re hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At FMC
In the last twelve months, the biggest single sale by an insider was when the Executive Chairman of the Board, Pierre Brondeau, sold US$11m worth of shares at a price of US$106 per share. So what is clear is that an insider saw fit to sell at around the current price of US$103. 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.
In the last year FMC insiders didn’t buy any company stock. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Does FMC Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 0.6% of FMC shares, worth about US$86m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At FMC Tell Us?
An insider hasn’t bought FMC 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. On the plus side, FMC makes money, and is growing profits. While insiders do own shares, they don’t own a heap, and they have been selling. We’d think twice before buying! In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing FMC. Be aware that FMC is showing 3 warning signs in our investment analysis, and 1 of those is a bit concerning…
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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. 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. Thank you for reading.