We wouldn’t blame Whispir Limited (ASX:WSP) shareholders if they were a little worried about the fact that Romilly Blackburn, a company insider, recently netted about AU$24m selling shares at an average price of AU$4.67. Probably the most concerning element of the whole transaction is that the disposal amounted to 53% of their entire holding.
The Last 12 Months Of Insider Transactions At Whispir
In fact, the recent sale by Romilly Blackburn was the biggest sale of Whispir shares made by an insider individual in the last twelve months, according to our records. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (AU$3.55). So it may not tell us anything about how insiders feel about the current share price.
You can see the insider transactions (by companies and 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 17% of Whispir shares, worth about AU$63m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Whispir Insider Transactions Indicate?
An insider hasn’t bought Whispir stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn’t show any insider buying. Insiders own shares, but we’re still pretty cautious, given the history of sales. So we’d only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Case in point: We’ve spotted 2 warning signs for Whispir you should be aware of.
Of course Whispir may not be the best stock to buy. So you may wish to see this free collection of high quality 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. 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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