A number of Waste Management, Inc. (NYSE:WM) insiders sold their shares in the last year, which may have raised concerns among investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
Although we don’t think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Waste Management
Waste Management Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Victoria Holt, sold US$89k worth of shares at a price of US$147 per share. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$161. 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 just 3.1% of Victoria Holt’s stake.
In the last year Waste Management insiders didn’t buy any company stock. 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!
NYSE:WM Insider Trading Volume December 21st 2021
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Waste Management
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Waste Management insiders own 0.2% of the company, currently worth about US$103m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Waste Management Insider Transactions Indicate?
It doesn’t really mean much that no insider has traded Waste Management shares in the last quarter. It’s great to see high levels of insider ownership, but looking back over the last year, we don’t gain confidence from the Waste Management insiders selling. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. For example – Waste Management has 1 warning sign we think you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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