Chairman John Casella Sold A Bunch Of Shares In Casella Waste Systems

Some Casella Waste Systems, Inc. (NASDAQ:CWST) shareholders may be a little concerned to see that the Chairman, John Casella, recently sold a substantial US$1.5m worth of stock at a price of US$114 per share. That's a big disposal, and it decreased their holding size by 46%, which is notable but not too bad.

View our latest analysis for Casella Waste Systems

The Last 12 Months Of Insider Transactions At Casella Waste Systems

In fact, the recent sale by Chairman John Casella was not their only sale of Casella Waste Systems shares this year. Earlier in the year, they fetched US$101 per share in a -US$2.4m sale. That means that even when the share price was below the current price of US$112, 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. We note that the biggest single sale was 97% of John Casella's holding.

Insiders in Casella Waste Systems didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Casella Waste Systems

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. Casella Waste Systems insiders own about US$153m worth of shares (which is 2.1% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Casella Waste Systems Insiders?

Insiders haven't bought Casella Waste Systems stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 4 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in Casella Waste Systems.

But note: Casella Waste Systems 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 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.