President of Global Freight Forwarding Of C.H. Robinson Worldwide Sold 100% Of Their Shares

Some C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) shareholders may be a little concerned to see that the President of Global Freight Forwarding, Michael Short, recently sold a substantial US$1.2m worth of stock at a price of US$99.58 per share. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for C.H. Robinson Worldwide

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

In fact, the recent sale by Michael Short was the biggest sale of C.H. Robinson Worldwide shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$101. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. We note that the biggest single sale was 100% of Michael Short's holding.

Insiders in C.H. Robinson Worldwide didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Insider Ownership Of C.H. Robinson Worldwide

For a common shareholder, it is worth checking how many shares are held by company 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$23m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

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

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. But it is good to see that C.H. Robinson Worldwide is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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. In terms of investment risks, we've identified 2 warning signs with C.H. Robinson Worldwide and understanding these should be part of your investment process.

Of course C.H. Robinson Worldwide may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.