Some Casella Waste Systems, Inc. (NASDAQ:CWST) shareholders may be a little concerned to see that the President & COO, Edwin Johnson, recently sold a substantial US$1.2m worth of stock at a price of US$61.10 per share. That's a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Casella Waste Systems
Over the last year, we can see that the biggest insider sale was by the Vice Chairman, Douglas Casella, for US$11m worth of shares, at about US$54.75 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$59.70. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 36% of Douglas Casella's stake.
In the last year Casella Waste Systems insiders didn't buy any company stock. 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!
I will like Casella Waste Systems 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 Casella Waste Systems Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Casella Waste Systems insiders own about US$121m worth of shares (which is 3.9% 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?
An insider hasn'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. But since Casella Waste Systems is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 3 warning signs (1 is a bit concerning!) 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, but not derivative transactions.
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