Don't Ignore The Insider Selling In Knight-Swift Transportation Holdings

Some Knight-Swift Transportation Holdings Inc. (NYSE:KNX) shareholders may be a little concerned to see that the Executive Chairman, Kevin Knight, recently sold a substantial US$3.8m worth of stock at a price of US$51.05 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.9%.

See our latest analysis for Knight-Swift Transportation Holdings

The Last 12 Months Of Insider Transactions At Knight-Swift Transportation Holdings

Notably, that recent sale by Kevin Knight is the biggest insider sale of Knight-Swift Transportation Holdings shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$52.13. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. This single sale was just 4.9% of Kevin Knight's stake.

Knight-Swift Transportation Holdings 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Knight-Swift Transportation Holdings 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.

Does Knight-Swift Transportation Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Knight-Swift Transportation Holdings insiders own 3.0% of the company, currently worth about US$259m based on the recent share price. 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 Knight-Swift Transportation Holdings Insiders?

Insiders sold Knight-Swift Transportation Holdings 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 these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Knight-Swift Transportation Holdings has 3 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.