Don't Ignore The Insider Selling In Abbott Laboratories

Anyone interested in Abbott Laboratories (NYSE:ABT) should probably be aware that a company insider, Eric Shroff, recently divested US$203k worth of shares in the company, at an average price of US$128 each. However, the silver lining is that the sale only reduced their total holding by 5.0%, so we're hesitant to read anything much into it, on its own.

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The Last 12 Months Of Insider Transactions At Abbott Laboratories

The CFO & Executive VP of Finance, Philip Boudreau, made the biggest insider sale in the last 12 months. That single transaction was for US$747k worth of shares at a price of US$135 each. So we know that an insider sold shares at around the present share price of US$125. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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.

Abbott Laboratories insiders didn't buy any shares over the last year. 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!

See our latest analysis for Abbott Laboratories

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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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Abbott Laboratories insiders own about US$1.0b worth of shares (which is 0.5% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Abbott Laboratories Tell Us?

An insider hasn't bought Abbott Laboratories stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Abbott Laboratories makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Abbott Laboratories has 1 warning sign we think you should be aware of.

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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.