Some Waste Connections, Inc. (NYSE:WCN) shareholders may be a little concerned to see that the Independent Director, William Razzouk, recently sold a whopping US$542k worth of stock at a price of US$90.29 per share. That sale reduced their total holding by 30.1% which is hardly insignificant, but far from the worst we’ve seen.
The Last 12 Months Of Insider Transactions At Waste Connections
In the last twelve months, the biggest single sale by an insider was when the Chief Accounting Officer & Senior VP, David Eddie, sold US$1.6m worth of shares at a price of US$80.06 per share. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$90.93. 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. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. This single sale was just 35.5% of David Eddie’s stake.
Over the last year, we note insiders sold 58485 shares worth US$4.9m. In the last year Waste Connections insiders didn’t buy any company stock. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Does Waste Connections 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.3% of Waste Connections shares, worth about US$62m. 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 Waste Connections Tell Us?
Insiders sold Waste Connections shares recently, but they didn’t buy any. And even if we look to the last year, we didn’t see any purchases. Insiders own shares, but we’re still pretty cautious, given the history of sales. So we’d only buy after careful consideration. Of course, the future is what matters most. So if you are interested in Waste Connections, you should check out this free report on analyst forecasts for the company.
But note: Waste Connections 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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