Have WiseTech Global Limited (ASX:WTC) Insiders Been Selling Their Stock?

We wouldn’t blame WiseTech Global Limited (ASX:WTC) shareholders if they were a little worried about the fact that Michael Gregg, the Independent Non-Executive Director recently netted about AU$11m selling shares at an average price of AU$28.60. However, it’s crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.9%.

See our latest analysis for WiseTech Global

The Last 12 Months Of Insider Transactions At WiseTech Global

In fact, the recent sale by Michael Gregg was the biggest sale of WiseTech Global shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of AU$28.35. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
ASX:WTC Insider Trading Volume September 2nd 2020

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of WiseTech Global

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. WiseTech Global insiders own about AU$1.3b worth of shares (which is 14% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At WiseTech Global Tell Us?

The insider sales have outweighed the insider buying, at WiseTech Global, in the last three months. Zooming out, the longer term picture doesn’t give us much comfort. But since WiseTech Global 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. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. In terms of investment risks, we’ve identified 3 warning signs with WiseTech Global and understanding these should be part of your investment process.

But note: WiseTech Global 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, but not derivative transactions.

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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. 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.
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