Some Parker-Hannifin Corporation (NYSE:PH) shareholders may be a little concerned to see that the President & COO, Andrew Ross, recently sold a substantial US$1.9m worth of stock at a price of US$589 per share. That's a big disposal, and it decreased their holding size by 15%, which is notable but not too bad.

Parker-Hannifin Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the VP, General Counsel & Secretary, Joseph Leonti, sold US$2.1m worth of shares at a price of US$429 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$586. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 22% of Joseph Leonti's holding.

In the last year Parker-Hannifin insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Parker-Hannifin

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Parker-Hannifin insiders own 0.5% of the company, worth about US$397m. 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 Do The Parker-Hannifin Insider Transactions Indicate?

Insiders haven't bought Parker-Hannifin stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Parker-Hannifin is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Parker-Hannifin. Every company has risks, and we've spotted 2 warning signs for Parker-Hannifin you should know about.

But note: Parker-Hannifin 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.