Some Edwards Lifesciences Corporation (NYSE:EW) shareholders may be a little concerned to see that the VP & Corporate Controller, Robert W. Sellers, recently sold a substantial US$1.2m worth of stock at a price of US$97.66 per share. That's a big disposal, and it decreased their holding size by 32%, which is notable but not too bad.
Edwards Lifesciences Insider Transactions Over The Last Year
In fact, the recent sale by Robert W. Sellers was the biggest sale of Edwards Lifesciences 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$97.45. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. 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).
Insiders in Edwards Lifesciences didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!NYSE:EW Insider Trading Volume April 26th 2021
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Edwards Lifesciences
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. Edwards Lifesciences insiders own about US$475m worth of shares (which is 0.8% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Edwards Lifesciences Tell Us?
An insider sold Edwards Lifesciences shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. Case in point: We've spotted 1 warning sign for Edwards Lifesciences you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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