COO & Member of the Executive Board Chris Heutink Sold A Bunch Of Shares In Randstad

Some Randstad N.V. (AMS:RAND) shareholders may be a little concerned to see that the COO & Member of the Executive Board, Chris Heutink, recently sold a substantial €1.8m worth of stock at a price of €51.60 per share. That sale reduced their total holding by 41% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Randstad

The Last 12 Months Of Insider Transactions At Randstad

In fact, the recent sale by Chris Heutink was the biggest sale of Randstad shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of €51.62, 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. This single sale was just 41% of Chris Heutink's stake.

All up, insiders sold more shares in Randstad than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Does Randstad 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. Randstad insiders own 38% of the company, currently worth about €3.5b 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 Randstad Tell Us?

Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Randstad. At Simply Wall St, we found 2 warning signs for Randstad that deserve your attention before buying any shares.

Of course Randstad 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.