Insiders were net sellers of WD-40 Company's (NASDAQ:WDFC ) stock during the past year. That is, insiders sold more stock than they bought.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At WD-40
Over the last year, we can see that the biggest insider sale was by the Group Managing Director of EIMEA & Emerging Markets, William Noble, for US$290k worth of shares, at about US$290 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$235. So it is hard to draw any strong conclusion from it. William Noble was the only individual insider to sell shares in the last twelve months.
William Noble ditched 1.80k shares over the year. The average price per share was US$275. 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!
View our latest analysis for WD-40
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
WD-40 Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at WD-40. We can see that VP of Finance Sara Hyzer paid US$57k for shares in the company. No-one sold. This makes one think the business has some good points.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that WD-40 insiders own about US$9.6m worth of shares (which is 0.3% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About WD-40 Insiders?
The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. Neither the level of insider ownership, nor the transactions over the last twelve months inspire us, but we think the recent buying is positive. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for WD-40.
But note: WD-40 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.
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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.