Have Expeditors International of Washington, Inc. (NASDAQ:EXPD) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
March 04, 2021
NasdaqGS:EXPD

Anyone interested in Expeditors International of Washington, Inc. (NASDAQ:EXPD) should probably be aware that the Senior VP & Chief Information Officer, Christopher McClincy, recently divested US$321k worth of shares in the company, at an average price of US$94.20 each. That sale was 15% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Expeditors International of Washington

The Last 12 Months Of Insider Transactions At Expeditors International of Washington

The President of Global Products, Daniel Wall, made the biggest insider sale in the last 12 months. That single transaction was for US$3.5m worth of shares at a price of US$86.19 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$93.34. 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. 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. It is worth noting that this sale was only 44% of Daniel Wall's holding.

Expeditors International of Washington 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!

insider-trading-volume
NasdaqGS:EXPD Insider Trading Volume March 4th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

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. Expeditors International of Washington insiders own about US$104m worth of shares (which is 0.7% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Expeditors International of Washington Insiders?

Insiders haven't bought Expeditors International of Washington stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Expeditors International of Washington makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Expeditors International of Washington that deserve your attention before buying any shares.

But note: Expeditors International of Washington may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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This article by Simply Wall St is general in nature. 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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