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GXO Logistics Insider Lowered Holding By 71% During Last Year

Simply Wall St ·  Sep 25 02:23

Looking at GXO Logistics, Inc.'s (NYSE:GXO ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

The Last 12 Months Of Insider Transactions At GXO Logistics

The Independent Director, Gena Ashe, made the biggest insider sale in the last 12 months. That single transaction was for US$905k worth of shares at a price of US$50.00 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$51.85. 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. This single sale was 71% of Gena Ashe's stake. The only individual insider seller over the last year was Gena Ashe.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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NYSE:GXO Insider Trading Volume September 24th 2024

I will like GXO Logistics better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does GXO Logistics 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. Insiders own 0.8% of GXO Logistics shares, worth about US$47m. 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 GXO Logistics Insider Transactions Indicate?

It doesn't really mean much that no insider has traded GXO Logistics shares in the last quarter. Still, the insider transactions at GXO Logistics in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing GXO Logistics. At Simply Wall St, we found 3 warning signs for GXO Logistics that deserve your attention before buying any shares.

Of course GXO Logistics 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.

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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.

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