Don't Ignore The Fact That This Insider Just Sold Some Shares In Norfolk Southern Corporation (NYSE:NSC)

By
Simply Wall St
Published
March 18, 2022
NYSE:NSC
Source: Shutterstock

We'd be surprised if Norfolk Southern Corporation (NYSE:NSC) shareholders haven't noticed that the Lead Independent Director, Steven Leer, recently sold US$186k worth of stock at US$266 per share. That sale was 15% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Norfolk Southern

Norfolk Southern Insider Transactions Over The Last Year

The Chairman & CEO, James Squires, made the biggest insider sale in the last 12 months. That single transaction was for US$5.6m worth of shares at a price of US$278 each. So we know that an insider sold shares at around the present share price of US$274. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In total, Norfolk Southern insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:NSC Insider Trading Volume March 18th 2022

I will like Norfolk Southern better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Norfolk Southern

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Norfolk Southern insiders own 0.1% of the company, worth about US$80m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Norfolk Southern Tell Us?

An insider sold Norfolk Southern shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Norfolk Southern makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for Norfolk Southern and we suggest you have a look.

Of course Norfolk Southern 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, but not derivative transactions.

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