Yahoo Finance With Danaher Corporation's (NYSE:DHR)) price down 5.0% this week, insiders might find some solace having sold US$4.5m worth of shares earlier this year.
Insiders at Danaher Corporation (NYSE:DHR) sold US$4.5m worth of stock at an average price of US$270 a share over the past year, making the most of their investment. After the stock price dropped 5.0% last week, the company's market value declined by US$7.1b, but insiders were able to mitigate their losses.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Danaher
The Last 12 Months Of Insider Transactions At Danaher
In the last twelve months, the biggest single sale by an insider was when the Executive Vice President, Joakim Weidemanis, sold US$3.3m worth of shares at a price of US$273 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$242. So it may not shed much light on insider confidence at current levels.
Over the last year we saw more insider selling of Danaher shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Danaher
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. We usually like to see fairly high levels of insider ownership. It's great to see that Danaher insiders own 11% of the company, worth about US$20b. 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 Danaher Insider Transactions Indicate?
The fact that there have been no Danaher insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Danaher insiders selling. 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. You'd be interested to know, that we found 1 warning sign for Danaher and we suggest you have a look.
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, but not derivative transactions.
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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.
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