Possible Bearish Signals With Knight-Swift Transportation Holdings Insiders Disposing Stock

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. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

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.

View our latest analysis for Knight-Swift Transportation Holdings

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

In the last twelve months, the biggest single sale by an insider was when the Executive Chairman, Kevin Knight, sold US$3.6m worth of shares at a price of US$56.59 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$48.14. So it may not shed much light on insider confidence at current levels.

In the last year Knight-Swift Transportation Holdings 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 Knight-Swift Transportation Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Knight-Swift Transportation Holdings Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Knight-Swift Transportation Holdings shares. In total, Executive VP & Chief Accounting Officer Cary Flanagan dumped US$112k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of Knight-Swift Transportation Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Knight-Swift Transportation Holdings insiders own 3.0% of the company, currently worth about US$235m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Knight-Swift Transportation Holdings Tell Us?

An insider sold Knight-Swift Transportation Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 2 warning signs for Knight-Swift Transportation Holdings and we suggest you have a look.

Of course Knight-Swift Transportation Holdings 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.