Knight-Swift Transportation Holdings Insiders Sell US$2.1m Of Stock, Possibly Signalling Caution

Over the past year, many Knight-Swift Transportation Holdings Inc. (NYSE:KNX) insiders sold a significant stake in the company which may have piqued investors' interest. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Knight-Swift Transportation Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive Chairman, Kevin Knight, for US$1.7m worth of shares, at about US$57.19 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$42.95). So it may not shed much light on insider confidence at current levels.

All up, insiders sold more shares in Knight-Swift Transportation Holdings than they bought, over the last year. 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!

View our latest analysis for Knight-Swift Transportation Holdings

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Insiders At Knight-Swift Transportation Holdings Have Sold Stock Recently

The last three months saw significant insider selling at Knight-Swift Transportation Holdings. In total, insiders sold US$276k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Knight-Swift Transportation Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Knight-Swift Transportation Holdings insiders own about US$203m worth of shares (which is 3.0% of the company). 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 Knight-Swift Transportation Holdings Insiders?

Insiders haven't bought Knight-Swift Transportation Holdings stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Knight-Swift Transportation Holdings makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Knight-Swift Transportation Holdings. Every company has risks, and we've spotted 1 warning sign for Knight-Swift Transportation Holdings you should know about.

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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.