Selling CA$6.1m worth of WeCommerce Holdings Ltd. (CVE:WE) stock at high prices would have gotten insiders a handsome reward

Despite the fact that WeCommerce Holdings Ltd. (CVE:WE) stock rose 26% last week, insiders who sold CA$6.1m worth of stock in the previous 12 months are likely to be better off. Selling at an average price of CA$14.85, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for WeCommerce Holdings

The Last 12 Months Of Insider Transactions At WeCommerce Holdings

Over the last year, we can see that the biggest insider sale was by the Independent Director, Shane Parrish, for CA$5.3m worth of shares, at about CA$15.00 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (CA$2.42). So it is hard to draw any strong conclusion from it.

Over the last year, we can see that insiders have bought 70.87k shares worth CA$398k. On the other hand they divested 409.75k shares, for CA$6.1m. All up, insiders sold more shares in WeCommerce Holdings than they bought, over the last year. 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!

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).

WeCommerce Holdings Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at WeCommerce Holdings. Independent Director Timothy McElvaine bought CA$23k worth of shares in that time. However, insider Andrew Dumont netted CA$6.7k for sales. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. WeCommerce Holdings insiders own about CA$34m worth of shares. That equates to 34% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About WeCommerce Holdings Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. We're a little cautious about the insider selling at WeCommerce Holdings. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing WeCommerce Holdings. For instance, we've identified 5 warning signs for WeCommerce Holdings (1 is potentially serious) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.