Anyone interested in ArcBest Corporation (NASDAQ:ARCB) should probably be aware that the Chief Human Resources Officer, Erin Gattis, recently divested US$283k worth of shares in the company, at an average price of US$142 each. However, the silver lining is that the sale only reduced their total holding by 6.0%, so we're hesitant to read anything much into it, on its own.
ArcBest Insider Transactions Over The Last Year
The Chairman, Judy McReynolds, made the biggest insider sale in the last 12 months. That single transaction was for US$2.7m worth of shares at a price of US$110 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$141. 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 17% of Judy McReynolds's holding.
In total, ArcBest insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does ArcBest Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. ArcBest insiders own about US$71m worth of shares. That equates to 2.1% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At ArcBest Tell Us?
An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ArcBest. In terms of investment risks, we've identified 2 warning signs with ArcBest and understanding them should be part of your investment process.
But note: ArcBest 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.
