We wouldn't blame WESCO International, Inc. (NYSE:WCC) shareholders if they were a little worried about the fact that Christine Wolf, the Executive VP & Chief Human Resources Officer recently netted about US$550k selling shares at an average price of US$177. That sale reduced their total holding by 10% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At WESCO International
The Independent Director, Steven Raymund, made the biggest insider sale in the last 12 months. That single transaction was for US$998k worth of shares at a price of US$172 each. That means that even when the share price was below the current price of US$178, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that 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. We note that the biggest single sale was 72% of Steven Raymund's holding.
WESCO International insiders didn't buy any shares 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!
See our latest analysis for WESCO International
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Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. WESCO International insiders own 1.8% of the company, currently worth about US$154m based on the recent share price. 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 Do The WESCO International Insider Transactions Indicate?
An insider sold WESCO International shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since WESCO International is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for WESCO International (of which 1 is concerning!) you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return 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 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.