We wouldn't blame Casella Waste Systems, Inc. (NASDAQ:CWST) shareholders if they were a little worried about the fact that Edwin Johnson, the President & COO recently netted about US$2.7m selling shares at an average price of US$88.77. That sale reduced their total holding by 21% which is hardly insignificant, but far from the worst we've seen.
Casella Waste Systems Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chairman, John Casella, sold US$7.7m worth of shares at a price of US$69.46 per share. That means that even when the share price was below the current price of US$89.06, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 92% of John Casella's holding.
Casella Waste Systems insiders didn't buy any shares 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Casella Waste Systems 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 Casella Waste Systems
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Casella Waste Systems insiders own 3.6% of the company, currently worth about US$167m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Casella Waste Systems Insider Transactions Indicate?
An insider hasn't bought Casella Waste Systems stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Casella Waste Systems is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. For example - Casella Waste Systems has 2 warning signs we think you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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.
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