Independent Director Herbert Schmidt Sold A Bunch Of Shares In Covenant Logistics Group

Some Covenant Logistics Group, Inc. (NASDAQ:CVLG) shareholders may be a little concerned to see that the Independent Director, Herbert Schmidt, recently sold a substantial US$1.2m worth of stock at a price of US$55.24 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 68% of their entire holding.

See our latest analysis for Covenant Logistics Group

Covenant Logistics Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chairman of the Board & CEO, David Parker, for US$6.1m worth of shares, at about US$52.05 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$53.91. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 7.6% of David Parker's holding.

Covenant Logistics Group insiders didn't buy any shares over the last year. 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!

I will like Covenant Logistics Group 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.

Insider Ownership Of Covenant Logistics Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Covenant Logistics Group insiders own about US$301m worth of shares (which is 41% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Covenant Logistics Group Insiders?

Insiders sold Covenant Logistics Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Covenant Logistics Group.

Of course Covenant Logistics Group 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.

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