Insiders At C.H. Robinson Worldwide Sold US$2.2m In Stock, Alluding To Potential Weakness

Many C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. 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, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for C.H. Robinson Worldwide

C.H. Robinson Worldwide Insider Transactions Over The Last Year

The President of Global Freight Forwarding, Michael Short, made the biggest insider sale in the last 12 months. That single transaction was for US$1.1m worth of shares at a price of US$98.38 each. That means that an insider was selling shares at slightly below the current price (US$104). 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 100% of Michael Short's stake.

In the last year C.H. Robinson Worldwide 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 C.H. Robinson Worldwide 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.

Does C.H. Robinson Worldwide Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.2% of C.H. Robinson Worldwide shares, worth about US$27m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At C.H. Robinson Worldwide Tell Us?

It doesn't really mean much that no insider has traded C.H. Robinson Worldwide shares in the last quarter. We don't take much encouragement from the transactions by C.H. Robinson Worldwide insiders. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing C.H. Robinson Worldwide. Be aware that C.H. Robinson Worldwide is showing 2 warning signs in our investment analysis, and 1 of those is potentially serious...

But note: C.H. Robinson Worldwide 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 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.