This Insider Has Just Sold Shares In Waste Management

We wouldn't blame Waste Management, Inc. (NYSE:WM) shareholders if they were a little worried about the fact that James Fish, the President recently netted about US$10m selling shares at an average price of US$228. That's a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.

See our latest analysis for Waste Management

The Last 12 Months Of Insider Transactions At Waste Management

In fact, the recent sale by James Fish was the biggest sale of Waste Management shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$231, an insider wanted to cash in some shares. 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. It is worth noting that this sale was only 12% of James Fish's holding.

In the last year Waste Management insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Does Waste Management Boast High Insider Ownership?

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Waste Management insiders own 0.2% of the company, currently worth about US$195m based on the recent share price. 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 Waste Management Insiders?

Insiders sold Waste Management shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Waste Management 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Waste Management. Case in point: We've spotted 2 warning signs for Waste Management you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.