Insiders At C.H. Robinson Worldwide Sold US$4.8m In Stock, Alluding To Potential Weakness

In the last year, many C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) insiders sold a substantial stake in the company which may have sparked shareholders' attention. 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.

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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The Last 12 Months Of Insider Transactions At C.H. Robinson Worldwide

In the last twelve months, the biggest single sale by an insider was when the President of Global Freight Forwarding, Michael Short, sold US$1.2m worth of shares at a price of US$99.58 per share. So what is clear is that an insider saw fit to sell at around the current price of US$94.58. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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 the last year C.H. Robinson Worldwide insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for C.H. Robinson Worldwide

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Insiders At C.H. Robinson Worldwide Have Sold Stock Recently

The last quarter saw substantial insider selling of C.H. Robinson Worldwide shares. In total, Chief Human Resources & ESG Officer Angela Freeman sold US$555k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does C.H. Robinson Worldwide 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that C.H. Robinson Worldwide insiders own 0.2% of the company, worth about US$24m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The C.H. Robinson Worldwide Insider Transactions Indicate?

An insider sold C.H. Robinson Worldwide shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, C.H. Robinson Worldwide makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for C.H. Robinson Worldwide 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.