Some Landstar System, Inc. (NASDAQ:LSTR) shareholders may be a little concerned to see that the Independent Non-Executive Chairman, Diana Murphy, recently sold a substantial US$2.5m worth of stock at a price of US$221 per share. That's a big disposal, and it decreased their holding size by 37%, which is notable but not too bad.

Landstar System Insider Transactions Over The Last Year

Notably, that recent sale by Diana Murphy is the biggest insider sale of Landstar System shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$223. 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. This single sale was just 37% of Diana Murphy's stake.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Landstar System Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. Landstar System insiders own about US$70m worth of shares. That equates to 0.9% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Landstar System Insider Transactions Indicate?

An insider hasn't bought Landstar System stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Landstar System. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Landstar System.

Of course Landstar System 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.