RBC Bearings Incorporated (NASDAQ:ROLL) insiders sold US$14m worth of stock, possibly signalling a downtrend

By
Simply Wall St
Published
September 21, 2021
NasdaqGS:ROLL
Source: Shutterstock

Many RBC Bearings Incorporated (NASDAQ:ROLL) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for RBC Bearings

RBC Bearings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chairman, Michael Hartnett, for US$11m worth of shares, at about US$190 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$216. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 20% of Michael Hartnett's stake.

RBC Bearings insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:ROLL Insider Trading Volume September 21st 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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. RBC Bearings insiders own about US$110m worth of shares (which is 2.1% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The RBC Bearings Insider Transactions Indicate?

The fact that there have been no RBC Bearings insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of RBC Bearings, we can't say the same about the selling of shares. Of course, the future is what matters most. So if you are interested in RBC Bearings, you should check out this free report on analyst forecasts for the company.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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