This Insider Has Just Sold Shares In Randstad N.V. (AMS:RAND)

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Some Randstad N.V. (AMS:RAND) shareholders may be a little concerned to see that the CEO & Chairman of the Executive Board, Jacques van den Broek, recently sold a whopping €512k worth of stock at a price of €51.21 per share. However, that sale only accounted for 5.6% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Randstad

Randstad Insider Transactions Over The Last Year

In fact, the recent sale by Jacques van den Broek was the biggest sale of Randstad shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (€51.44). 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. 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 5.6% of Jacques van den Broek's stake.

Happily, we note that in the last year insiders paid €159k for 3588 shares. But they sold 26206 for €1.3m. Over the last year we saw more insider selling of Randstad shares, than buying. You can see the insider transactions (by 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!

ENXTAM:RAND Recent Insider Trading, November 10th 2019
ENXTAM:RAND Recent Insider Trading, November 10th 2019

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Randstad 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Randstad insiders own 32% of the company, worth about €3.0b. 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 Randstad Insiders?

An insider sold Randstad shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Randstad.

But note: Randstad may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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