We wouldn’t blame Willis Towers Watson Public Limited Company (NASDAQ:WLTW) shareholders if they were a little worried about the fact that Nicolas Aubert, a company insider, recently netted about US$1.5m selling shares at an average price of US$195. That diminished their holding by a very significant 56.4%, which arguably implies a strong desire to reallocate capital.
Check out our latest analysis for Willis Towers Watson
Willis Towers Watson Insider Transactions Over The Last Year
The insider, Julie Gebauer, made the biggest insider sale in the last 12 months. That single transaction was for US$1.6m worth of shares at a price of US$160 each. That means that an insider was selling shares at slightly below the current price (US$192). 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. 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 only 11% of Julie Gebauer’s holding.
In the last twelve months insiders netted US$4.3m for 25069.07 shares sold. Insiders in Willis Towers Watson didn’t buy any shares in 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!
Insider Ownership of Willis Towers Watson
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. Willis Towers Watson insiders own about US$109m worth of shares (which is 0.4% 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.
So What Do The Willis Towers Watson Insider Transactions Indicate?
An insider sold stock recently, but they haven’t been buying. And there weren’t any purchases to give us comfort, over the last year. But since Willis Towers Watson is profitable and growing, we’re not too worried by this. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. Of course, the future is what matters most. So if you are interested in Willis Towers Watson, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 editorial-team@simplywallst.com. 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.