Trade Alert: President of Global Freight Forwarding Of C.H. Robinson Worldwide Michael Short Has Sold Stock

We wouldn't blame C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) shareholders if they were a little worried about the fact that Michael Short, the President of Global Freight Forwarding recently netted about US$1.1m selling shares at an average price of US$98.38. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for C.H. Robinson Worldwide

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

Notably, that recent sale by Michael Short is the biggest insider sale of C.H. Robinson Worldwide shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$97.79. 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).

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

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. C.H. Robinson Worldwide insiders own about US$30m worth of shares. That equates to 0.3% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

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. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! 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. For example - C.H. Robinson Worldwide has 3 warning signs we think 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.