Costco Wholesale Senior EVP and COO of Warehouse Operations - U.S. & Mexico Russell Miller Sells 26% Of Holding

We wouldn't blame Costco Wholesale Corporation (NASDAQ:COST) shareholders if they were a little worried about the fact that Russell Miller, the Senior EVP and COO of Warehouse Operations - U.S. & Mexico recently netted about US$3.1m selling shares at an average price of US$915. That's a big disposal, and it decreased their holding size by 26%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Costco Wholesale

The insider, James Klauer, made the biggest insider sale in the last 12 months. That single transaction was for US$3.9m worth of shares at a price of US$981 each. So what is clear is that an insider saw fit to sell at around the current price of US$917. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in Costco Wholesale 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!

View our latest analysis for Costco Wholesale

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Insider Ownership Of Costco Wholesale

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Costco Wholesale insiders own 0.2% of the company, currently worth about US$709m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Costco Wholesale Insiders?

Insiders sold Costco Wholesale shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Costco Wholesale 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Costco Wholesale and understanding this should be part of your investment process.

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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.