Some Zimmer Biomet Holdings, Inc. (NYSE:ZBH) shareholders may be a little concerned to see that the President of Asia Pacific, Sang Yi, recently sold a substantial US$1.5m worth of stock at a price of US$115 per share. That diminished their holding by a very significant 71%, which arguably implies a strong desire to reallocate capital.
Zimmer Biomet Holdings Insider Transactions Over The Last Year
In fact, the recent sale by Sang Yi was the biggest sale of Zimmer Biomet Holdings shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$113. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Over the last year, we can see that insiders have bought 9.31k shares worth US$1.1m. But they sold 12.86k shares for US$1.5m. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Zimmer Biomet Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of Zimmer Biomet Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.1% of Zimmer Biomet Holdings shares, worth about US$29m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Zimmer Biomet Holdings Tell Us?
An insider hasn't bought Zimmer Biomet Holdings stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But since Zimmer Biomet Holdings is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zimmer Biomet Holdings. While conducting our analysis, we found that Zimmer Biomet Holdings has 3 warning signs and it would be unwise to ignore these.
But note: Zimmer Biomet Holdings 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 of direct interests only, but not derivative transactions or indirect interests.
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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.