Despite a 5.3% gain in FactSet Research Systems Inc.'s (NYSE:FDS) stock price this week, shareholders shouldn't let up. Although prices were relatively low, insiders chose to sell US$4.0m worth of stock in the past 12 months. This could be a sign of impending weakness.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for FactSet Research Systems

FactSet Research Systems Insider Transactions Over The Last Year

The Independent Director, Joseph Zimmel, made the biggest insider sale in the last 12 months. That single transaction was for US$1.7m worth of shares at a price of US$364 each. That means that even when the share price was below the current price of US$430, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 53% of Joseph Zimmel's stake.

In the last year FactSet Research Systems insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like FactSet Research Systems better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insiders At FactSet Research Systems Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at FactSet Research Systems. In total, Independent Director Joseph Zimmel dumped US$391k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of FactSet Research Systems

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From our data, it seems that FactSet Research Systems insiders own 0.06% of the company, worth about US$9.1m. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At FactSet Research Systems Tell Us?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, FactSet Research Systems makes money, and is growing profits. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We'd certainly 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. Every company has risks, and we've spotted 2 warning signs for FactSet Research Systems you should know about.

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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