This Insider Has Just Sold Shares In Thermo Fisher Scientific

Some Thermo Fisher Scientific Inc. (NYSE:TMO) shareholders may be a little concerned to see that the Chief Human Resources Officer & Senior VP, Lisa Britt, recently sold a substantial US$2.2m worth of stock at a price of US$613 per share. That's a big disposal, and it decreased their holding size by 21%, which is notable but not too bad.

See our latest analysis for Thermo Fisher Scientific

The Last 12 Months Of Insider Transactions At Thermo Fisher Scientific

In fact, the recent sale by Lisa Britt was the biggest sale of Thermo Fisher Scientific shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$615, 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. It is worth noting that this sale was only 21% of Lisa Britt's holding.

In the last year Thermo Fisher Scientific insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

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. Thermo Fisher Scientific insiders own 0.1% of the company, currently worth about US$275m 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.

So What Do The Thermo Fisher Scientific Insider Transactions Indicate?

An insider hasn't bought Thermo Fisher Scientific stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Thermo Fisher Scientific makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 2 warning signs for Thermo Fisher Scientific and we suggest you have a look.

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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com