Recent insider activity at Waste Management Inc. (NYSE)has drawn attention, as insiders have sold substantial amounts of stock over the past year. Insider transactions are often scrutinized by investors to gauge confidence in a company’s future. While insider sales may have various motivations, a consistent pattern of selling, especially when no insiders are buying, can raise red flags.
Major Insider Transactions Over the Last 12 Months:
- James Fish, President and CEO of Waste Management, executed the largest insider sale in the past year, selling US$7.4 million worth of shares at an average price of US$204 per share. This sale occurred below the current market price of US$208, a factor that might suggest insiders considered the stock fairly or fully valued at the time. Although notable, this sale only represents 11% of Fish's total holdings.
Recent Insider Activity:
- During the last quarter, there was a notable increase in insider sales. Michael Watson, Senior VP & Chief Customer Officer, sold US$330,000 worth of shares. Interestingly, there were no recorded purchases from insiders during this period. The absence of insider buying could imply that some insiders believe the stock is not undervalued or present a strong buying opportunity at current levels.
Insider Ownership:
- Insiders at Waste Management collectively own shares worth approximately US$151 million, representing about 0.2% of the company. Although this level of ownership suggests that insiders have a stake in the company's performance, it is relatively small, limiting the potential influence of their personal investments on overall company strategy. However, it still aligns leadership with shareholder interests to some degree.