The fact that multiple Republic Services, Inc. (NYSE:RSG) 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.

Check out our latest analysis for Republic Services

Republic Services Insider Transactions Over The Last Year

The Executive VP & Chief Marketing Officer, Amanda Hodges, made the biggest insider sale in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$186 each. That means that even when the share price was below the current price of US$200, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 49% of Amanda Hodges's stake.

Over the last year, we can see that insiders have bought 619.00 shares worth US$115k. But they sold 15.15k shares for US$2.9m. Over the last year we saw more insider selling of Republic Services shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insiders At Republic Services Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Republic Services. In total, Independent Director Tomago Collins sold US$650k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Republic Services Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 0.1% of Republic Services shares, worth about US$71m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.