Insiders Sold WW International Prematurely At US$7.11 With Stock Trading Higher

WW International, Inc.'s (NASDAQ:WW) value has fallen 16% in the last week, but insiders who sold US$327k worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$7.11 is still lower than the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for WW International

WW International Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Michael Colosi, for US$327k worth of shares, at about US$7.22 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$1.82. So it may not shed much light on insider confidence at current levels. Michael Colosi was the only individual insider to sell shares in the last twelve months.

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

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 WW International

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, WW International insiders have about 0.8% of the stock, worth approximately US$1.1m. We consider this fairly low insider ownership.

What Might The Insider Transactions At WW International Tell Us?

It doesn't really mean much that no insider has traded WW International shares in the last quarter. The insider transactions at WW International are not inspiring us to buy. And we're not picking up on high enough insider ownership to give us any comfort. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 3 warning signs we've spotted with WW International (including 2 which are potentially serious).

But note: WW International 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.