We'd be surprised if WisdomTree, Inc. (NYSE:WT) shareholders haven't noticed that the Chief Information Officer, David Yates, recently sold US$271k worth of stock at US$18.06 per share. However, the silver lining is that the sale only reduced their total holding by 8.7%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At WisdomTree
In fact, the recent sale by David Yates was the biggest sale of WisdomTree shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$18.72. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. It is worth noting that this sale was only 8.7% of David Yates's holding.
David Yates ditched 21.82k shares over the year. The average price per share was US$15.89. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for WisdomTree
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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. We usually like to see fairly high levels of insider ownership. WisdomTree insiders own about US$270m worth of shares (which is 9.6% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About WisdomTree Insiders?
The insider sales have outweighed the insider buying, at WisdomTree, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that WisdomTree is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing WisdomTree. For instance, we've identified 2 warning signs for WisdomTree (1 doesn't sit too well with us) you should be aware of.
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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 of direct interests only, but not derivative transactions or indirect interests.
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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.