Trade Alert: Chairman Of Casella Waste Systems John Casella Has Sold Stock

We wouldn't blame Casella Waste Systems, Inc. (NASDAQ:CWST) shareholders if they were a little worried about the fact that John Casella, the Chairman recently netted about US$2.4m selling shares at an average price of US$101. That diminished their holding by a very significant 97%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for Casella Waste Systems

Casella Waste Systems Insider Transactions Over The Last Year

Notably, that recent sale by John Casella is the biggest insider sale of Casella Waste Systems shares that we've seen in the last year. That means that even when the share price was below the current price of US$107, 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 97% of John Casella's stake.

Casella Waste Systems insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Casella Waste Systems better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Casella Waste Systems

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Casella Waste Systems insiders own 2.5% of the company, worth about US$158m. 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 Do The Casella Waste Systems Insider Transactions Indicate?

Insiders sold Casella Waste Systems shares recently, but they didn't buy any. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Casella Waste Systems. For example - Casella Waste Systems has 4 warning signs we think you should be aware of.

Of course Casella Waste Systems 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.

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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.