The fact that multiple RB Global, Inc. (NYSE:RBA) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

The Last 12 Months Of Insider Transactions At RB Global

The insider, Ann Fandozzi, made the biggest insider sale in the last 12 months. That single transaction was for US$5.5m worth of shares at a price of US$62.19 each. That means that an insider was selling shares at slightly below the current price (US$75.77). 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. 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. This single sale was 74% of Ann Fandozzi's stake. Notably Ann Fandozzi was also the biggest buyer, having purchased US$2.4m worth of shares.

Over the last year, we can see that insiders have bought 42.44k shares worth US$2.4m. But insiders sold 123.47k shares worth US$8.0m. All up, insiders sold more shares in RB Global than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 RB Global better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

RB Global Insiders Are Selling The Stock

The last quarter saw substantial insider selling of RB Global shares. In total, Chief Product & Technology Officer Baron Concors sold US$1.3m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of RB Global

For a common shareholder, it is worth checking how many shares are held by company 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. RB Global insiders own about US$40m worth of shares. That equates to 0.3% of the company. 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 RB Global Insider Transactions Indicate?

An insider hasn't bought RB Global stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing RB Global. For example, RB Global has 4 warning signs (and 1 which is a bit concerning) we think you should know about.

But note: RB Global 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.