The fact that several JB Hunt Transport Services, Inc. (NASDAQ:JBHT) Insiders dumping a significant amount of shares over the past year may have raised eyebrows among investors. When evaluating insider transactions, it is usually more useful to know whether insiders are buying than whether they are selling, as the latter is open to many interpretations. However, when numerous insiders are selling, shareholders should investigate further.

While we do not believe shareholders should simply follow insider transactions, we do think it is perfectly logical to keep an eye on insider activities.

Check out our latest analysis for JB Hunt Transport Services

Insider transactions by JB Hunt Transport Services in the last year

The largest single sale by an insider in the last twelve months was the sale of US$1.4 million worth of shares by insider Craig Harper at a price of US$213 per share. While insider selling is a negative, we find it even more negative when shares are sold at a lower price. The good news is that this large sale was well above the current price of US$177, so it may not tell us anything about how insiders feel about the current share price.

Over the last twelve months, insiders bought 11,800 shares for US$2.1 million. But they sold 37,310 shares for US$7.6 million. Overall, insiders sold more JB Hunt Transport Services shares over the last year than they bought. Sellers received an average price of around US$204. We’re not happy about insider selling. However, we note that the average sell price was significantly higher than the current share price (which is US$177). You can see insider transactions (by companies and individuals) over the last year in the chart below. If you want to know exactly who sold, for how much and when, just click on the chart below!

I’ll like JB Hunt Transport Services better if I see some big insider buying. While we wait, check out this free List of undervalued stocks and small cap stocks with significant recent insider buying.

Insiders at JB Hunt Transport Services recently sold shares

Over the past three months, there have been significantly more insider sales than purchases of JB Hunt Transport Services shares. In total, Darren Field, Executive VP & President of Intermodal, sold $525,000 worth of shares during this time. On the other hand, independent director Persio Lisboa spent $98,000 buying shares. In general, this level of net selling could be considered somewhat bearish.

Insider ownership of JB Hunt Transport Services

Many investors like to check how much of a company is owned by insiders. We usually like to see a relatively high level of insider ownership. JB Hunt Transport Services insiders own 21% of the company, which is currently worth about US$3.8 billion based on the current share price. Most shareholders would be happy to see this level of insider ownership because it suggests that management’s incentives are well aligned with those of other shareholders.

So what do the insider transactions at JB Hunt Transport Services say?

The hard truth for JB Hunt Transport Services is that there have been more insider selling than insider buying over the last three months. Despite some insider buying, the long-term picture doesn’t make us much more optimistic. While insiders own a lot of the company’s shares (which is good), our analysis of their transactions doesn’t make us confident about the company, so you should definitely check out this article. FREE Report with analyst forecasts for JB Hunt Transport Services.

Naturally, If you look elsewhere, you may find a fantastic investment. So take a look at the free List of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulator. Currently, we only consider open market transactions and private disposals of direct holdings, but not derivative transactions or indirect holdings.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.