Some FactSet Research Systems Inc. (NYSE:FDS) shareholders may be a little concerned to see that the Executive Chairman, Philip Hadley, recently sold a whopping US$21m worth of stock at a price of US$283 per share. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At FactSet Research Systems
In fact, the recent sale by Executive Chairman Philip Hadley was not their only sale of FactSet Research Systems shares this year. They previously made an even bigger sale of -US$21.2m worth of shares at a price of US$283 per share. So we know that an insider sold shares at around the present share price of US$268. 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.
Over the last year, we note insiders sold 147613 shares worth US$42m. Insiders in FactSet Research Systems didn't buy any shares in the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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. FactSet Research Systems insiders own about US$156m worth of shares (which is 1.5% of the company). 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 FactSet Research Systems Tell Us?
Insiders sold FactSet Research Systems shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that FactSet Research Systems is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: FactSet Research Systems 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, but not derivative transactions.
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