Insiders seem to have made the most of their holdings by selling US$7.8m worth of Clean Harbors, Inc. (NYSE:CLH) stock at an average sell price of US$108 during the past year. The company's market valuation decreased by US$565m after the stock price dropped 8.8% over the past week, but insiders were spared from painful losses.

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 Clean Harbors

The Last 12 Months Of Insider Transactions At Clean Harbors

Over the last year, we can see that the biggest insider sale was by the Founder, Alan McKim, for US$3.3m worth of shares, at about US$110 per share. So what is clear is that an insider saw fit to sell at around the current price of US$108. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Over the last year we saw more insider selling of Clean Harbors shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insiders At Clean Harbors Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Clean Harbors. In total, insiders dumped US$603k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Clean Harbors insiders own 7.3% of the company, currently worth about US$426m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Clean Harbors Insiders?

Insiders haven't bought Clean Harbors stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Clean Harbors makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Clean Harbors. Our analysis shows 2 warning signs for Clean Harbors (1 doesn't sit too well with us!) and we strongly recommend you look at these before investing.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an 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 account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.