ArcBest Corporation's (NASDAQ:ARCB) value has fallen 18% in the last week, but insiders who sold US$1.7m worth of stock over the last year have had less success. The average selling price of US$118 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
We've discovered 1 warning sign about ArcBest. View them for free.ArcBest Insider Transactions Over The Last Year
The insider, Michael Newcity, made the biggest insider sale in the last 12 months. That single transaction was for US$1.3m worth of shares at a price of US$122 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$58.61. So it may not shed much light on insider confidence at current levels.
Happily, we note that in the last year insiders paid US$156k for 1.70k shares. But insiders sold 14.34k shares worth US$1.7m. In total, ArcBest insiders sold more than they bought over the last year. The sellers received a price of around US$118, on average. Insider selling doesn't make us excited to buy. However, we do note that the average sale price was significantly higher than the current share price (which is US$58.61). 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!
See our latest analysis for ArcBest
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insiders At ArcBest Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at ArcBest. Specifically, Chief Financial Officer J. Beasley bought US$52k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does ArcBest Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.4% of ArcBest shares, worth about US$19m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About ArcBest Insiders?
It's certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. The more recent transactions are a positive, but ArcBest insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. In short they are likely aligned with shareholders. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ArcBest. Case in point: We've spotted 1 warning sign for ArcBest 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.
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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