This Cleanaway Waste Management Insider Reduced Their Stake By 24%

Looking at Cleanaway Waste Management Limited's (ASX:CWY ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

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.

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The Last 12 Months Of Insider Transactions At Cleanaway Waste Management

In the last twelve months, the biggest single sale by an insider was when the CEO, MD & Director, Mark Schubert, sold AU$767k worth of shares at a price of AU$2.82 per share. So we know that an insider sold shares at around the present share price of AU$2.70. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Mark Schubert was the only individual insider to sell over the last year.

Happily, we note that in the last year insiders paid AU$217k for 78.00k shares. On the other hand they divested 300.00k shares, for AU$840k. Mark Schubert sold a total of 300.00k shares over the year at an average price of AU$2.80. 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!

Check out our latest analysis for Cleanaway Waste Management

I will like Cleanaway Waste Management better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Cleanaway Waste Management Have Sold Stock Recently

There was substantially more insider selling, than buying, of Cleanaway Waste Management shares over the last three months. In that time, CEO, MD & Director Mark Schubert dumped AU$840k worth of shares. Meanwhile insiders bought AU$217k worth , as we said above . Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own AU$6.9m worth of Cleanaway Waste Management stock, about 0.1% of the company. I generally like to see higher levels of ownership.

So What Do The Cleanaway Waste Management Insider Transactions Indicate?

The stark truth for Cleanaway Waste Management is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Cleanaway Waste Management makes money, and is growing profits. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. 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 1 warning sign that you should run your eye over to get a better picture of Cleanaway Waste Management.

Of course Cleanaway Waste Management 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.