Don't Ignore The Fact That This Insider Just Sold Some Shares In WiseTech Global Limited (ASX:WTC)

Some WiseTech Global Limited (ASX:WTC) shareholders may be a little concerned to see that the Founder, Richard White, recently sold a substantial AU$5.2m worth of stock at a price of AU$51.42 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.5%.

View our latest analysis for WiseTech Global

WiseTech Global Insider Transactions Over The Last Year

In fact, the recent sale by Founder Richard White was not their only sale of WiseTech Global shares this year. Earlier in the year, they fetched AU$55.03 per share in a -AU$6.5m sale. That means that an insider was selling shares at around the current price of AU$51.39. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Over the last year, we can see that insiders have bought 377.78k shares worth AU$17m. But they sold 4.25m shares for AU$172m. Over the last year we saw more insider selling of WiseTech Global shares, than buying. They sold for an average price of about AU$40.56. We don't gain confidence from insider selling below the recent share price. But we wouldn't put too much weight on the insider selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like WiseTech Global better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does WiseTech Global Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. WiseTech Global insiders own about AU$1.8b worth of shares (which is 11% 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 WiseTech Global Insider Transactions Indicate?

Unfortunately, there has been more insider selling of WiseTech Global stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing WiseTech Global. In terms of investment risks, we've identified 1 warning sign with WiseTech Global and understanding it should be part of your investment process.

Of course WiseTech Global 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. 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.