We wouldn't blame Charles River Laboratories International, Inc. (NYSE:CRL) shareholders if they were a little worried about the fact that William Barbo, the Corporate Executive Vice President of Community Relations recently netted about US$1.0m selling shares at an average price of US$249. That sale reduced their total holding by 15% which is hardly insignificant, but far from the worst we've seen.
Charles River Laboratories International Insider Transactions Over The Last Year
Notably, that recent sale by Corporate Executive Vice President of Community Relations William Barbo was not the only time they sold Charles River Laboratories International shares this year. Earlier in the year, they fetched US$217 per share in a -US$1.3m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$248. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 19%of William Barbo's holding.
Over the last year, we can see that insiders have bought 7.94k shares worth US$1.4m. But they sold 14.51k shares for US$3.2m. In total, Charles River Laboratories International insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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Does Charles River Laboratories International Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Charles River Laboratories International insiders own 1.2% of the company, worth about US$147m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Charles River Laboratories International Tell Us?
Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Charles River Laboratories International. At Simply Wall St, we found 1 warning sign for Charles River Laboratories International that deserve your attention before buying any shares.
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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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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.