We wouldn’t blame Euronet Worldwide, Inc. (NASDAQ:EEFT) shareholders if they were a little worried about the fact that Juan Bianchi, the Executive VP & CEO of Money Transfer Segment recently netted about US$1.1m selling shares at an average price of US$153. Probably the most concerning element of the whole transaction is that the dump amounted to 100% of their entire holding.
The Last 12 Months Of Insider Transactions At Euronet Worldwide
Over the last year, we can see that the biggest insider sale was by the Executive VP, Rick Weller, for US$4.8m worth of shares, at about US$120 per share. That means that an insider was selling shares at slightly below the current price (US$153). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. We note that the biggest single sale was 51.4% of Rick Weller’s holding.
We note that in the last year insiders divested 56144 shares for a total of US$6.8m. In the last year Euronet Worldwide insiders didn’t buy any company stock. 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!
Does Euronet Worldwide Boast High Insider Ownership?
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Euronet Worldwide insiders own 3.9% of the company, currently worth about US$329m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Euronet Worldwide Insider Transactions Indicate?
An insider sold Euronet Worldwide shares recently, but they didn’t buy any. And even if we look to the last year, we didn’t see any purchases. But it is good to see that Euronet Worldwide is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Euronet Worldwide.
But note: Euronet Worldwide 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.
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.