Despite the fact that FactSet Research Systems Inc. (NYSE:FDS) stock rose 3.4% last week, insiders who sold US$1.6m worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$418, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At FactSet Research Systems
Over the last year, we can see that the biggest insider sale was by the Independent Chairman of the Board, Robin Abrams, for US$740k worth of shares, at about US$419 per share. So we know that an insider sold shares at around the present share price of US$414. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In the last year FactSet Research Systems insiders didn't buy any company stock. You can see the insider transactions (by companies and 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.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that FactSet Research Systems insiders own 0.06% of the company, worth about US$9.9m. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About FactSet Research Systems Insiders?
It doesn't really mean much that no insider has traded FactSet Research Systems shares in the last quarter. Our analysis of FactSet Research Systems insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing FactSet Research Systems. While conducting our analysis, we found that FactSet Research Systems has 1 warning sign and it would be unwise to ignore it.
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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