Some Charles River Laboratories International, Inc. (NYSE:CRL) shareholders may be a little concerned to see that the Non-Executive Director, James Foster, recently sold a substantial US$17m worth of stock at a price of US$225 per share. That sale reduced their total holding by 27% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At Charles River Laboratories International

Notably, that recent sale by James Foster is the biggest insider sale of Charles River Laboratories International shares that we've seen in the last year. That means that even when the share price was below the current price of US$231, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 27% of James Foster's holding.

All up, insiders sold more shares in Charles River Laboratories International 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Charles River Laboratories International insiders own 1.1% of the company, worth about US$125m. 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 Charles River Laboratories International Insiders?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Charles River Laboratories International has 1 warning sign we think you should be aware of.

But note: Charles River Laboratories International may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.