We wouldn't blame Expeditors International of Washington, Inc. (NASDAQ:EXPD) shareholders if they were a little worried about the fact that Benjamin Clark, a company insider, recently netted about US$993k selling shares at an average price of US$131. That's a big disposal, and it decreased their holding size by 42%, which is notable but not too bad.
Expeditors International of Washington Insider Transactions Over The Last Year
The Non-Independent Director, Glenn Alger, made the biggest insider sale in the last 12 months. That single transaction was for US$20m worth of shares at a price of US$124 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$129. 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 only 31% of Glenn Alger's holding.
In the last year Expeditors International of Washington insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Expeditors International of Washington better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Expeditors International of Washington Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Expeditors International of Washington insiders own 0.5% of the company, worth about US$111m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other 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. But it is good to see that Expeditors International of Washington is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Expeditors International of Washington you should be aware of, and 2 of them are a bit unpleasant.
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.
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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