Some Ryder System, Inc. (NYSE:R) shareholders may be a little concerned to see that the Executive VP, Robert Fatovic, recently sold a substantial US$1.2m worth of stock at a price of US$250 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.2%.

The Last 12 Months Of Insider Transactions At Ryder System

The insider, E. Smith, made the biggest insider sale in the last 12 months. That single transaction was for US$6.7m worth of shares at a price of US$210 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$260. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 95% of E. Smith's stake.

Ryder System insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Ryder System better if I see some big insider buys.

Insider Ownership Of Ryder System

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Ryder System insiders own 3.3% of the company, currently worth about US$333m based on the recent share price. 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 Ryder System Tell Us?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Ryder System is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 2 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in Ryder System.

But note: Ryder System 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.