Generally, when a single insider buys stock, it’s usually not a big deal. However, when several insiders are buying, like in the case of WD-40 Company (NASDAQ:WDFC), it sends a favorable message to the company’s shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to completely ignore insider transactions.
See our latest analysis for WD-40
WD-40 Insider Transactions Over The Last Year
The Managing Director of Asia-Pacific, Geoffrey Holdsworth, made the biggest insider sale in the last 12 months. That single transaction was for US$403k worth of shares at a price of US$152 each. That means that an insider was selling shares at slightly below the current price (US$189). When an insider sells below the current price, it suggests that they consider a 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 35% of Geoffrey Holdsworth’s stake. Geoffrey Holdsworth was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 3.21k shares for US$556k. But insiders sold 2.65k shares worth US$403k. Overall, WD-40 insiders were net buyers over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
WD-40 is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
WD-40 Insiders Bought Stock Recently
Over the last quarter, WD-40 insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$267k worth of shares. This makes one think the business has some good points.
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. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that WD-40 insiders own 1.1% of the company, worth about US$29m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At WD-40 Tell Us?
It is good to see recent purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in WD-40 shares, given these transactions (along with notable insider ownership of the company). While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that WD-40 is showing 2 warning signs in our investment analysisand 1 of those is significant…
If you would prefer to check out another company — one with potentially superior financials — then don’t miss this free list of interesting companies, that have HIGH returns on equity 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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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