Clean Harbors Insiders Sold US$29m Of Shares Suggesting Hesitancy

Over the past year, many Clean Harbors, Inc. (NYSE:CLH) insiders sold a significant stake in the company which may have piqued investors' interest. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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Clean Harbors Insider Transactions Over The Last Year

The Founder, Alan McKim, made the biggest insider sale in the last 12 months. That single transaction was for US$11m worth of shares at a price of US$212 each. So what is clear is that an insider saw fit to sell at around the current price of US$206. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In total, Clean Harbors insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Clean Harbors

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Clean Harbors Insiders Are Selling The Stock

Over the last three months, we've seen notably more insider selling, than insider buying, at Clean Harbors. In total, insiders sold US$12m worth of shares in that time. On the other hand we note Executive VP & CFO Eric Dugas bought US$201k worth of shares , as previously mentioned . We don't view these transactions as a positive sign.

Insider Ownership Of Clean Harbors

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Clean Harbors insiders own 5.7% of the company, worth about US$620m. 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 Does This Data Suggest About Clean Harbors Insiders?

Unfortunately, there has been more insider selling of Clean Harbors stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Clean Harbors is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Case in point: We've spotted 2 warning signs for Clean Harbors you should be aware of.

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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.