Anyone interested in Republic Services, Inc. (NYSE:RSG) should probably be aware that the Executive VP, Catharine Ellingsen, recently divested US$253k worth of shares in the company, at an average price of US$90.00 each. That sale was 20.4% of their holding, so it does make us raise an eyebrow.
Republic Services Insider Transactions Over The Last Year
The CEO & Director, Donald Slager, made the biggest insider sale in the last 12 months. That single transaction was for US$5.8m worth of shares at a price of US$82.66 each. That means that an insider was selling shares at slightly below the current price (US$88.41). 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. We note that the biggest single sale was only 19.6% of Donald Slager’s holding.
In total, Republic Services insiders sold more than they bought over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Insider Ownership of Republic Services
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 appears that Republic Services insiders own 0.1% of the company, worth about US$41m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Republic Services Insider Transactions Indicate?
Insiders sold stock recently, but they haven’t been buying. And our longer term analysis of insider transactions didn’t bring confidence, either. While insiders do own shares, they don’t own a heap, and they have been selling. We’re in no rush to buy! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Republic Services.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.