Watches of Switzerland Group plc (LON:WOSG) insiders who sold UK£5.0m worth of stock earlier this year are probably glad they did so as market cap slides to UK£2.3b

Insiders seem to have made the most of their holdings by selling UK£5.0m worth of Watches of Switzerland Group plc (LON:WOSG) stock at an average sell price of UK£14.50 during the past year. The company’s market cap plunged by UK£182m after price dropped by 7.5% last week but insiders were able to limit their loss to an extent.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Our analysis indicates that WOSG is potentially undervalued!

Watches of Switzerland Group Insider Transactions Over The Last Year

The insider, Lars Anders Romberg, made the biggest insider sale in the last 12 months. That single transaction was for UK£5.0m worth of shares at a price of UK£14.50 each. 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 UK£9.42. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Lars Anders Romberg.

Over the last year, we can see that insiders have bought 24.08k shares worth UK£273k. On the other hand they divested 341.49k shares, for UK£5.0m. 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).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 3.3% of Watches of Switzerland Group shares, worth about UK£74m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Watches of Switzerland Group Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Watches of Switzerland Group insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. Of course, the future is what matters most. So if you are interested in Watches of Switzerland Group, you should check out this free report on analyst forecasts for the company.

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, 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.