Senior VP & General Counsel Michael Boxer Sold A Bunch Of Shares In Thermo Fisher Scientific

Some Thermo Fisher Scientific Inc. (NYSE:TMO) shareholders may be a little concerned to see that the Senior VP & General Counsel, Michael Boxer, recently sold a substantial US$2.0m worth of stock at a price of US$533 per share. That's a big disposal, and it decreased their holding size by 29%, which is notable but not too bad.

See our latest analysis for Thermo Fisher Scientific

Thermo Fisher Scientific Insider Transactions Over The Last Year

The Chief Human Resources Officer & Senior VP, Lisa Britt, made the biggest insider sale in the last 12 months. That single transaction was for US$2.2m worth of shares at a price of US$613 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$509). So it may not shed much light on insider confidence at current levels.

Over the last year we saw more insider selling of Thermo Fisher Scientific shares, than buying. 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!

I will like Thermo Fisher Scientific better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Thermo Fisher Scientific Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Thermo Fisher Scientific insiders own 0.1% of the company, worth about US$209m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Thermo Fisher Scientific Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Thermo Fisher Scientific is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Thermo Fisher Scientific has 2 warning signs we think you should be aware of.

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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