WisdomTree Sees Insider Stock Selling
Simply Wall St · 01/29 10:50

Insiders were net sellers of WisdomTree, Inc.'s (NYSE:WT ) stock during the past year. That is, insiders sold more stock than they bought.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for WisdomTree

The Last 12 Months Of Insider Transactions At WisdomTree

The Senior Advisor to the CEO & Chief Administrative Officer, Peter Ziemba, made the biggest insider sale in the last 12 months. That single transaction was for US$698k worth of shares at a price of US$7.04 each. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$7.06. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 9.2% of Peter Ziemba's holding. The only individual insider seller over the last year was Peter Ziemba.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:WT Insider Trading Volume January 29th 2024

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. WisdomTree insiders own 14% of the company, currently worth about US$141m based on the recent share price. 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 WisdomTree Insiders?

It doesn't really mean much that no insider has traded WisdomTree shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of WisdomTree insider transactions don't fill us with confidence. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for WisdomTree that deserve your attention before buying any shares.

But note: WisdomTree may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.