A number of insiders bought FMC Corporation (NYSE:FMC) stock last year, which is great news for shareholders
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of FMC Corporation (NYSE:FMC), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for FMC
The Last 12 Months Of Insider Transactions At FMC
In the last twelve months, the biggest single purchase by an insider was when Independent Director Carol Davidson bought US$141k worth of shares at a price of US$93.94 per share. We do like to see buying, but this purchase was made at well below the current price of US$105. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 3.86k shares for US$363k. But they sold 2.00k shares for US$227k. In total, FMC insiders bought more than they sold over the last year. 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!
FMC is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
FMC Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at FMC. Specifically, VP, Corporate Controller & Chief Accounting Officer Nicholas Pfeiffer ditched US$120k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.4% of FMC shares, worth about US$49m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About FMC Insiders?
An insider sold stock recently, but they haven't been buying. In contrast, they appear keener if you look at the last twelve months. It's good to see insiders are shareholders. So we're not overly bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing FMC. Case in point: We've spotted 3 warning signs for FMC you should be aware of, and 1 of these is concerning.
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, 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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