Possible bearish signals as Randstad N.V. (AMS:RAND) insiders disposed of €5.4m worth of stock

Published
June 25, 2022
ENXTAM:RAND
Source: Shutterstock

Many Randstad N.V. (AMS:RAND) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Randstad

Randstad Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Jacques van den Broek, for €2.6m worth of shares, at about €65.89 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (€47.37). So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 178.85k shares for €2.3m. On the other hand they divested 83.22k shares, for €5.4m. In total, Randstad insiders sold more than they bought over the last year. The sellers received a price of around €64.86, on average. We are not joyful about insider selling. But we note that the selling, on average, was at well above the recently traded price of €47.37. You can see the insider transactions (by companies and 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-trading-volume
ENXTAM:RAND Insider Trading Volume June 25th 2022

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 Randstad 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. 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 32% of the company, currently worth about €2.8b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Randstad Tell Us?

The fact that there have been no Randstad insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Randstad insiders selling. 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, but not derivative transactions.

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