Independent Director Of Landstar System Sold 29% Of Their Shares

We wouldn't blame Landstar System, Inc. (NASDAQ:LSTR) shareholders if they were a little worried about the fact that David Bannister, the Independent Director recently netted about US$1.8m selling shares at an average price of US$177. That's a big disposal, and it decreased their holding size by 29%, which is notable but not too bad.

Check out our latest analysis for Landstar System

The Last 12 Months Of Insider Transactions At Landstar System

The VP, General Counsel & Secretary, Michael Kneller, made the biggest insider sale in the last 12 months. That single transaction was for US$2.3m worth of shares at a price of US$190 each. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$192. 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. This single sale was just 17% of Michael Kneller's stake.

In the last year Landstar System 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. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Landstar System 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

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. Landstar System insiders own about US$50m worth of shares. That equates to 0.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Landstar System Insiders?

An insider sold Landstar System shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! While it's good to be aware of 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. In terms of investment risks, we've identified 1 warning sign with Landstar System and understanding it should be part of your investment process.

Of course Landstar System 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.