Over the past year, many Republic Services, Inc. (NYSE: RSG) Insiders sold a significant stake in the company, which may have sparked investor interest. When evaluating insider trading, it is usually more beneficial to know whether insiders are buying or selling, as the latter can be subject to many interpretations. However, when multiple insiders sell shares over a specific length of time, shareholders should take this into account as this could potentially be a red flag.
While we don’t believe shareholders should just follow insider trading, we believe it would be foolish to ignore insider trading altogether.
Republic Services Insider Trading in the Past Year
Consultant Donald Slager had the biggest insider sale in the past 12 months. This one-time transaction involved $ 4.1 million of shares priced at $ 94.85 each. This means that even when the share price was below the current price of US $ 135, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that he or she considered that lower price to be fair. This makes us wonder what they think of the recent (higher) valuation. Please note, however, that sellers can have a variety of reasons for selling, so we are not sure what they think about the stock price. We note that the biggest single sale was only 13% of Donald Slager’s stake.
In total, insiders sold more shares of Republic Services than they bought in the past year. Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. By clicking on the graph below, you can see the exact detail of each insider trade!
NYSE: RSG Insider Trading Volume December 6, 2021
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Republic Services insiders recently sold shares
The past three months have seen significant insider sales at Republic Services. Specifically, Independent Director Tomago Collins surrendered US $ 267,000 of shares during this period, and we did not record any purchases. In light of this, it’s hard to say that all insiders think stocks are a good deal.
Does Republic Services pride itself on strong insider ownership?
I like to watch how many shares insiders own in a company, to help inform my perspective on their alignment with insiders. Strong insider ownership often makes company management more concerned with the interests of shareholders. It appears Republic Services insiders own 0.2% of the company, worth around $ 74 million. While this is a high but not exceptional level of insider ownership, it is enough to indicate some alignment between management and small shareholders.
So what does this data suggest about Republic Services insiders?
An insider hasn’t bought any Republic Services shares in the past three months, but there have been some sales. With zooming out, the longer term image doesn’t give us much comfort. On the positive side, Republic Services is making money and increasing profits. While the insiders own stocks, they don’t own a bunch, and they’ve sold. We are in no rush to buy! So these insider trading can help us build a thesis about the stock, but it’s also worth knowing the risks this business faces. At Simply Wall St, we found 2 warning signs for the services of the Republic that deserve your attention before buying stocks.
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For the purposes of this article, insiders are those persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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