RBC Bearings Independent Director Steven Kaplan Sells 25% Of Holding

We'd be surprised if RBC Bearings Incorporated (NYSE:RBC) shareholders haven't noticed that the Independent Director, Steven Kaplan, recently sold US$456k worth of stock at US$228 per share. The eyebrow raising move amounted to a reduction of 25% in their holding.

The Last 12 Months Of Insider Transactions At RBC Bearings

Over the last year, we can see that the biggest insider sale was by the Independent Director, Edward Stewart, for US$471k worth of shares, at about US$235 per share. So what is clear is that an insider saw fit to sell at around the current price of US$231. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year RBC Bearings insiders didn't buy any company stock. 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!

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. RBC Bearings insiders own about US$124m worth of shares (which is 1.9% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About RBC Bearings Insiders?

Insiders sold RBC Bearings shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since RBC Bearings is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing RBC Bearings. Case in point: We've spotted 2 warning signs for RBC Bearings you should be aware of, and 1 of these makes us a bit uncomfortable.