Insiders At Casella Waste Systems Sold US$16m In Stock, Alluding To Potential Weakness

Simply Wall St · 07/03 11:48

The fact that multiple Casella Waste Systems, Inc. (NASDAQ:CWST) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Casella Waste Systems Insider Transactions Over The Last Year

The Chairman, John Casella, made the biggest insider sale in the last 12 months. That single transaction was for US$2.4m worth of shares at a price of US$101 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$112. 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. It is worth noting that this sale was 97% of John Casella's holding.

Insiders in Casella Waste Systems didn't buy any shares in the last year. 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!

View our latest analysis for Casella Waste Systems

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NasdaqGS:CWST Insider Trading Volume July 3rd 2025

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).

Insiders At Casella Waste Systems Have Sold Stock Recently

The last three months saw significant insider selling at Casella Waste Systems. In total, insiders dumped US$2.8m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Casella Waste Systems Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Casella Waste Systems insiders own 2.1% of the company, currently worth about US$156m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Casella Waste Systems Tell Us?

Insiders sold Casella Waste Systems shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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, Casella Waste Systems has 4 warning signs (and 1 which can't be ignored) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.