Possible Bearish Signals With WiseTech Global Insiders Disposing Stock

In the last year, many WiseTech Global Limited ( ASX:WTC ) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for WiseTech Global

WiseTech Global Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Founder, Richard White, sold AU$6.5m worth of shares at a price of AU$63.50 per share. That means that an insider was selling shares at slightly below the current price (AU$77.15). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 36% of Richard White's direct individually held stake, though he does own more stock through indirect interests.

WiseTech Global insiders didn't buy any shares over the last year. 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does WiseTech Global Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. WiseTech Global insiders own about AU$2.4b worth of shares (which is 9.4% 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.

What Might The Insider Transactions At WiseTech Global Tell Us?

It doesn't really mean much that no insider has traded WiseTech Global shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of WiseTech Global insider transactions don't fill us with confidence. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for WiseTech Global .

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 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.