We wouldn’t blame Walmart Inc. (NYSE:WMT) shareholders if they were a little worried about the fact that John Furner, the Executive VP recently netted about US$906k selling shares at an average price of US$115. However, it’s crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8%.
The Last 12 Months Of Insider Transactions At Walmart
In the last twelve months, the biggest single sale by an insider was when the Executive VP & CFO, M. Biggs, sold US$1.8m worth of shares at a price of US$96.14 per share. That means that even when the share price was below the current price of US$112, an insider wanted to cash in some shares. 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% of M. Biggs’s holding.
We note that in the last year insiders divested 88306 shares for a total of US$8.8m. In the last year Walmart insiders didn’t buy any company stock. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Does Walmart Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. Walmart insiders own 0.7% of the company, currently worth about US$2.3b 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 Does This Data Suggest About Walmart Insiders?
Insiders haven’t bought Walmart stock in the last three months, but there was some selling. And there weren’t any purchases to give us comfort, over the last year. But since Walmart is profitable and growing, we’re not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Walmart.
Of course Walmart may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.