Insider Sellers Might Regret Selling WildBrain Shares at a Lower Price Than Current Market Value

WildBrain Ltd.'s (TSE:WILD) stock price has dropped 12% in the previous week, but insiders who sold CA$863k in stock over the past year have had less luck. The average selling price of CA$1.94 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for WildBrain

WildBrain Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Aaron Ames, sold CA$230k worth of shares at a price of CA$2.03 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of CA$1.11. So it may not shed much light on insider confidence at current levels.

Insiders in WildBrain didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does WildBrain Boast High Insider Ownership?

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. From looking at our data, insiders own CA$4.4m worth of WildBrain stock, about 1.8% of the company. We consider this fairly low insider ownership.

So What Do The WildBrain Insider Transactions Indicate?

The fact that there have been no WildBrain insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by WildBrain insiders. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for WildBrain you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.