Some Old Dominion Freight Line, Inc. (NASDAQ:ODFL) shareholders may be a little concerned to see that the Senior Vice President of Strategic Development, Cecil Overbey, recently sold a substantial US$4.0m worth of stock at a price of US$198 per share. That sale reduced their total holding by 38% which is hardly insignificant, but far from the worst we've seen.

Old Dominion Freight Line Insider Transactions Over The Last Year

The Executive Chairman of the Board, David Congdon, made the biggest insider sale in the last 12 months. That single transaction was for US$10m worth of shares at a price of US$195 each. That means that an insider was selling shares at slightly below the current price (US$199). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. It is worth noting that this sale was only 0.7% of David Congdon's holding.

In the last year Old Dominion Freight Line insiders didn't buy any company stock. 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!

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).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Old Dominion Freight Line insiders own 10% of the company, currently worth about US$4.3b 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.

What Might The Insider Transactions At Old Dominion Freight Line Tell Us?

An insider sold Old Dominion Freight Line shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Old Dominion Freight Line makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. Of course, the future is what matters most.

Of course Old Dominion Freight Line may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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.