Anyone interested in Ryder System, Inc. (NYSE:R) should probably be aware that the Senior VP, Cristina Gallo-Aquino, recently divested US$155k worth of shares in the company, at an average price of US$67.06 each. That sale was 12% of their holding, so it does make us raise an eyebrow.
Ryder System Insider Transactions Over The Last Year
The Lead Independent Director Robert Eck made the biggest insider purchase in the last 12 months. That single transaction was for US$259k worth of shares at a price of US$34.57 each. We do like to see buying, but this purchase was made at well below the current price of US$68.26. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid US$379k for 10.75k shares. But they sold 10.06k shares for US$414k. Over the last year we saw more insider selling of Ryder System shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.3% of Ryder System shares, worth about US$46m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Ryder System Insiders?
An insider hasn't bought Ryder System stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While we like knowing 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. Our analysis shows 3 warning signs for Ryder System (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing.
Of course Ryder 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, but not derivative transactions.
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