Thermo Fisher Scientific Insiders Sell US$2.3m Of Stock, Possibly Signalling Caution

Many Thermo Fisher Scientific Inc. (NYSE:TMO) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Thermo Fisher Scientific

Thermo Fisher Scientific Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chief Human Resources Officer & Senior VP, Lisa Britt, for US$2.2m worth of shares, at about US$613 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$513. So it is hard to draw any strong conclusion from it.

Thermo Fisher Scientific insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Thermo Fisher Scientific Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Thermo Fisher Scientific insiders own 0.1% of the company, currently worth about US$213m based on the recent share price. 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 Thermo Fisher Scientific Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Thermo Fisher Scientific insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Thermo Fisher Scientific. In terms of investment risks, we've identified 1 warning sign with Thermo Fisher Scientific and understanding this should be part of your investment process.

But note: Thermo Fisher Scientific 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 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.