Some Knight-Swift Transportation Holdings Inc. (NYSE:KNX) shareholders may be a little concerned to see that the President of U.S. Xpress, Timothy Harrington, recently sold a substantial US$508k worth of stock at a price of US$59.81 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 59% of their entire holding.

The Last 12 Months Of Insider Transactions At Knight-Swift Transportation Holdings

The Executive Chairman, Kevin Knight, made the biggest insider sale in the last 12 months. That single transaction was for US$1.8m worth of shares at a price of US$51.01 each. That means that an insider was selling shares at slightly below the current price (US$59.55). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 2.4% of Kevin Knight's stake.

All up, insiders sold more shares in Knight-Swift Transportation Holdings than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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: Most of them are flying under the radar).

Does Knight-Swift Transportation Holdings Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Knight-Swift Transportation Holdings insiders own 2.9% of the company, worth about US$276m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Knight-Swift Transportation Holdings Insiders?

Insiders 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. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 3 warning signs with Knight-Swift Transportation Holdings and understanding them should be part of your investment process.

Of course Knight-Swift Transportation Holdings 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.