We wouldn't blame Clean Harbors, Inc. (NYSE:CLH) shareholders if they were a little worried about the fact that Eric Gerstenberg, the Co-CEO, Co-President & Director recently netted about US$1.5m selling shares at an average price of US$250. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 9.8%.

Clean Harbors Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Founder, Alan McKim, for US$13m worth of shares, at about US$184 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$247. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 2.5% of Alan McKim's holding.

Clean Harbors 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Clean Harbors insiders own about US$800m worth of shares (which is 6.0% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Clean Harbors Insider Transactions Indicate?

Insiders sold Clean Harbors shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Clean Harbors is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Clean Harbors. You'd be interested to know, that we found 2 warning signs for Clean Harbors and we suggest you have a look.

But note: Clean Harbors 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 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.