We’d be surprised if Hub Group, Inc. (NASDAQ:HUBG) shareholders haven’t noticed that the Independent Director, Charles Reaves, recently sold US$317k worth of stock at US$52.84 per share. However, the silver lining is that the sale only reduced their total holding by 8.7%, so we’re hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Hub Group
In fact, the recent sale by Charles Reaves was the biggest sale of Hub Group shares made by an insider individual in the last twelve months, according to our records. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$54.63. 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. However, while insider selling is sometimes discouraging, it’s only a weak signal. It is worth noting that this sale was only 8.7% of Charles Reaves’s holding.
Charles Reaves sold a total of 11.00k shares over the year at an average price of US$48.01. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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: insiders have been buying them).
Does Hub Group Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company 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. Hub Group insiders own 6.4% of the company, currently worth about US$120m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Hub Group Tell Us?
An insider sold Hub Group shares recently, but they didn’t buy any. And even if we look at the last year, we didn’t see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. To assist with this, we’ve discovered 2 warning signs that you should run your eye over to get a better picture of Hub Group.
But note: Hub Group 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, but not derivative transactions.
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This article by Simply Wall St is general in nature. 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.
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