We wouldn't blame Landstar System, Inc. (NASDAQ:LSTR) shareholders if they were a little worried about the fact that Diana Murphy, the Non-Executive Chairman recently netted about US$826k selling shares at an average price of US$118. That's a big dump, and it decreased their holding size by 18%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Landstar System
Over the last year, we can see that the biggest insider sale was by the Special Advisor to the Chief Executive Officer, Patrick O'Malley, for US$2.5m worth of shares, at about US$111 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$117. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 52% of Patrick O'Malley's holding.
In the last twelve months insiders netted US$7.4m for 65481 shares sold. In the last year Landstar System insiders didn't buy any company stock. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Many investors like to check how much of a company is owned by 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. Landstar System insiders own about US$51m worth of shares. That equates to 1.1% 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.
So What Do The Landstar System Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Landstar System is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We'd think twice before buying! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.