On August 25, 2023, Robert Speights, President, Industrial Services of Clean Harbors Inc, sold 1,984 shares of the company. This move comes in the wake of a series of insider sell transactions over the past year, with Speights having sold a total of 6,136 shares during this period.
Clean Harbors Inc is a leading provider of environmental, energy, and industrial services throughout North America. The company serves a diverse customer base, including a majority of Fortune 500 companies. Its customer base spans numerous industries, including chemical, energy and manufacturing, as well as numerous government agencies. These customers rely on Clean Harbors to deliver a broad range of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services.
The insider's recent sell transaction is part of a broader trend within the company. Over the past year, there have been 29 insider sells and no insider buys. This trend is illustrated in the following image:
The relationship between insider sell transactions and the stock price is often a complex one. In general, insider selling can be seen as a bearish signal, suggesting that insiders may believe the stock is overvalued or that the company's future prospects are not as strong as the market believes. However, it's important to note that insiders may sell shares for a variety of reasons, not all of which are related to their views on the company's performance.
On the day of the insider's recent sell, shares of Clean Harbors Inc were trading at $171.03, giving the company a market cap of $9.29 billion. The stock's price-earnings ratio was 22.93, higher than the industry median of 18.92 but lower than the company's historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, Clean Harbors Inc is modestly overvalued. The stock's price-to-GF-Value ratio is 1.18, with a GF Value of $144.81. This valuation is depicted in the following image:
In conclusion, the insider's recent sell transaction, along with the broader trend of insider selling at Clean Harbors Inc, may be a signal for investors to exercise caution. However, it's also important to consider the company's valuation and other factors when making investment decisions.
