Have Insiders Sold CSX Corporation (NASDAQ:CSX) Shares Recently?

Simply Wall St
October 27, 2021
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We wouldn't blame CSX Corporation (NASDAQ:CSX) shareholders if they were a little worried about the fact that Nathan Goldman, the Executive VP recently netted about US$1.4m selling shares at an average price of US$34.94. That sale reduced their total holding by 20% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for CSX

CSX Insider Transactions Over The Last Year

The Independent Chairman, John Zillmer, made the biggest insider sale in the last 12 months. That single transaction was for US$2.6m worth of shares at a price of US$32.64 each. That means that an insider was selling shares at slightly below the current price (US$35.86). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 19% of John Zillmer's holding.

CSX insiders didn't buy any shares over 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!

NasdaqGS:CSX Insider Trading Volume October 28th 2021

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Does CSX 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. We usually like to see fairly high levels of insider ownership. It appears that CSX insiders own 0.08% of the company, worth about US$64m. 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 Does This Data Suggest About CSX Insiders?

Insiders haven't bought CSX stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that CSX is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CSX. Case in point: We've spotted 2 warning signs for CSX you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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