Anyone interested in WD-40 Company (NASDAQ:WDFC) should probably be aware that the President & COO, Steven Brass, recently divested US$128k worth of shares in the company, at an average price of US$189 each. That sale was 16% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At WD-40
In the last twelve months, the biggest single sale by an insider was when the Managing Director of Asia-Pacific, Geoffrey Holdsworth, sold US$257k worth of shares at a price of US$182 per share. That means that an insider was selling shares at slightly below the current price (US$189). 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. This single sale was just 31% of Geoffrey Holdsworth’s stake.
In total, WD-40 insiders sold more than they bought over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of WD-40
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 1.5% of WD-40 shares, worth about US$38m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About WD-40 Insiders?
An insider sold stock recently, but they haven’t been buying. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. While insiders do own shares, they don’t own a heap, and they have been selling. So we’d only buy after careful consideration. Of course, the future is what matters most. So if you are interested in WD-40, you should check out this free report on analyst forecasts for the company.
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, but not derivative transactions.
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