Some Parker-Hannifin Corporation (NYSE:PH) shareholders may be a little concerned to see that insider Robert Malone recently sold a substantial US$1.6m worth of stock at a price of US$310 per share. That's a big disposal, and it decreased their holding size by 39%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Parker-Hannifin
In the last twelve months, the biggest single sale by an insider was when the Vice Chairman & President, Lee Banks, sold US$4.3m worth of shares at a price of US$316 per share. So what is clear is that an insider saw fit to sell at around the current price of US$304. 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.
Insiders in Parker-Hannifin didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership of Parker-Hannifin
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. Parker-Hannifin insiders own about US$202m worth of shares (which is 0.5% 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 Parker-Hannifin Tell Us?
An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Parker-Hannifin is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Parker-Hannifin.
Of course Parker-Hannifin may not be the best stock to buy. So you may wish to see this free collection of high quality 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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