Independent Lead Director of J.B. Hunt Transport Services James Robo Buys 110% More Shares

Those following along with J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) will no doubt be intrigued by the recent purchase of shares by James Robo, Independent Lead Director of the company, who spent a stonking US$10.0m on stock at an average price of US$168. That increased their holding by a full 110%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

Check out our latest analysis for J.B. Hunt Transport Services

J.B. Hunt Transport Services Insider Transactions Over The Last Year

In fact, the recent purchase by James Robo was the biggest purchase of J.B. Hunt Transport Services shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$169 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid US$12m for 71.25k shares. But they sold 48.65k shares for US$9.5m. In the last twelve months there was more buying than selling by J.B. Hunt Transport Services insiders. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of J.B. Hunt Transport Services

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that J.B. Hunt Transport Services insiders own 21% of the company, worth about US$3.6b. 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 J.B. Hunt Transport Services Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest J.B. Hunt Transport Services insiders are well aligned, and quite possibly think the share price is too low. Looks promising! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: J.B. Hunt Transport Services 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 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.