Stock Analysis

The Executive VP of Ryder System, Inc. (NYSE:R), Karen Jones, Just Sold 51% Of Their Holding

  •  Updated
Source: Shutterstock

Some Ryder System, Inc. (NYSE:R) shareholders may be a little concerned to see that the Executive VP, Karen Jones, recently sold a substantial US$535k worth of stock at a price of US$73.63 per share. That diminished their holding by a very significant 51%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for Ryder System

Ryder System Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the President of Global Supply Chain Solutions & Dedicated Transportation Solutions, John Sensing, for US$1.3m worth of shares, at about US$81.46 per share. So what is clear is that an insider saw fit to sell at around the current price of US$74.32. 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.

Ryder System insiders didn't buy any shares 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!

NYSE:R Insider Trading Volume May 9th 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Ryder System insiders own 1.2% of the company, worth about US$44m. 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 Do The Ryder System Insider Transactions Indicate?

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. On the plus side, Ryder System makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for Ryder System (1 is concerning!) and we strongly recommend you look at them before investing.

But note: Ryder System may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Ryder System is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis