Possible Bearish Signals With RB Global Insiders Disposing Stock

In the last year, many RB Global, Inc. (NYSE:RBA) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for RB Global

The Last 12 Months Of Insider Transactions At RB Global

In the last twelve months, the biggest single sale by an insider was when the insider, Ann Fandozzi, sold US$5.5m worth of shares at a price of US$62.19 per share. That means that even when the share price was below the current price of US$73.33, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 74% of Ann Fandozzi's holding. Notably Ann Fandozzi was also the biggest buyer, having purchased US$2.4m worth of shares.

In the last twelve months insiders purchased 42.44k shares for US$2.4m. But they sold 123.47k shares for US$8.0m. All up, insiders sold more shares in RB Global than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

RB Global Insiders Are Selling The Stock

The last quarter saw substantial insider selling of RB Global shares. Specifically, Chief Product & Technology Officer Baron Concors ditched US$1.3m 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.

Does RB Global Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.3% of RB Global shares, worth about US$44m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At RB Global Tell Us?

An insider sold RB Global shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing RB Global. When we did our research, we found 4 warning signs for RB Global (1 is a bit unpleasant!) that we believe deserve your full attention.

Of course RB Global may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.