Insiders are probably glad they sold their shares in Wrkr Ltd (ASX:WRK) after 12% drop

Insiders at Wrkr Ltd (ASX:WRK) sold AU$134k worth of stock at an average price of AU$0.026 a share over the past year, making the most of their investment. After the stock price dropped 12% last week, the company's market value declined by AU$3.8m, but insiders were able to mitigate their losses.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Wrkr

Wrkr Insider Transactions Over The Last Year

The insider, Donald Sharp, made the biggest insider sale in the last 12 months. That single transaction was for AU$134k worth of shares at a price of AU$0.026 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.023. So it is hard to draw any strong conclusion from it. Donald Sharp was the only individual insider to sell shares in the last twelve months. Notably Donald Sharp was also the biggest buyer, having purchased AU$110k worth of shares.

Over the last year, we can see that insiders have bought 5.07m shares worth AU$110k. On the other hand they divested 5.14m shares, for AU$134k. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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.

Have Wrkr Insiders Traded Recently?

There was some insider buying at Wrkr over the last quarter. Independent Non Executive Director Paul Collins shelled out AU$11k for shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Wrkr insiders own about AU$6.1m worth of shares. That equates to 21% of the company. 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 Do The Wrkr Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. Still, the insider transactions at Wrkr in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Wrkr has 6 warning signs (and 2 which are concerning) we think you should know about.

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.

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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.