Ryder System Insiders Sell US$5.1m Of Stock, Possibly Signalling Caution

In the last year, many Ryder System, Inc. (NYSE:R) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

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 Ryder System

Ryder System Insider Transactions Over The Last Year

The insider, Steve Martin, made the biggest insider sale in the last 12 months. That single transaction was for US$1.7m worth of shares at a price of US$165 each. So what is clear is that an insider saw fit to sell at around the current price of US$164. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Insiders in Ryder System didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insiders At Ryder System Have Sold Stock Recently

The last three months saw significant insider selling at Ryder System. In total, Executive VP & Chief Information Officer Rajeev Ravindran sold US$221k 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.

Does Ryder System Boast High Insider Ownership?

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. Ryder System insiders own about US$205m 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 Ryder System Insiders?

An insider hasn't bought Ryder System stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Ryder System is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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. Be aware that Ryder System is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

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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.