Have WiseTech Global Insiders Been Selling Stock?

Some WiseTech Global Limited (ASX:WTC) shareholders may be a little concerned to see that the Independent Non-Executive Director, Charles Gibbon, recently sold a substantial AU$200m worth of stock at a price of AU$131 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 8.8%.

View our latest analysis for WiseTech Global

The Last 12 Months Of Insider Transactions At WiseTech Global

In fact, the recent sale by Charles Gibbon was the biggest sale of WiseTech Global shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of AU$131. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 8.8% of Charles Gibbon's stake.

Happily, we note that in the last year insiders paid AU$144k for 1.57k shares. But they sold 1.54m shares for AU$201m. Over the last year we saw more insider selling of WiseTech Global shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does WiseTech Global Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. WiseTech Global insiders own 8.1% of the company, currently worth about AU$3.5b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At WiseTech Global Tell Us?

An insider sold WiseTech Global shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since WiseTech Global is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing WiseTech Global. While conducting our analysis, we found that WiseTech Global has 1 warning sign and it would be unwise to ignore it.

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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.