We'd be surprised if Federated Hermes, Inc. (NYSE:FHI) shareholders haven't noticed that an insider, Saker Nusseibeh, recently sold US$371k worth of stock at US$65.10 per share. On the bright side, that sale was only 4.0% of their holding, so we doubt it's very meaningful, on its own.
Federated Hermes Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Director, Paul Uhlman, for US$4.1m worth of shares, at about US$56.72 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$65.53. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 22% of Paul Uhlman's holding.
In the last year Federated Hermes 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Federated Hermes
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Does Federated Hermes Boast High Insider Ownership?
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. It's great to see that Federated Hermes insiders own 4.5% of the company, worth about US$205m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Federated Hermes Insiders?
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Federated Hermes makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Federated Hermes.
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 of direct interests only, but not derivative transactions or indirect interests.
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