This Insider Has Just Sold Shares In AGCO

Some AGCO Corporation (NYSE:AGCO) shareholders may be a little concerned to see that insider Torsten Dehner recently sold a substantial US$3.1m worth of stock at a price of US$111 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 70% of their entire holding.

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AGCO Insider Transactions Over The Last Year

In fact, the recent sale by Torsten Dehner was the biggest sale of AGCO shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$111. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year we saw more insider selling of AGCO shares, than buying. 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!

View our latest analysis for AGCO

I will like AGCO 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 AGCO

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that AGCO insiders own 0.8% of the company, worth about US$59m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At AGCO Tell Us?

Unfortunately, there has been more insider selling of AGCO stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with AGCO and understanding them should be part of your investment process.

But note: AGCO 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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