We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in WesBanco, Inc. (NASDAQ:WSBC).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
WesBanco Insider Transactions Over The Last Year
The Director, Charlotte Zuschlag, made the biggest insider sale in the last 12 months. That single transaction was for US$495k worth of shares at a price of US$49.50 each. While we don’t usually like to see insider selling, it’s more concerning if the sales take price at a lower price. The good news is that this large sale was at well above current price of US$41.24. So it is hard to draw any strong conclusion from it.
In the last twelve months insiders purchased 3201 shares for US$124k. On the other hand they divested 14006 shares, for US$678k. All up, insiders sold more shares in WesBanco than they bought, over the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
WesBanco Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at WesBanco. In total, insiders bought US$124k worth of shares in that time, and we didn’t record any sales whatsoever. That shows some optimism about the company’s future.
Insider Ownership of WesBanco
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that WesBanco insiders own 3.1% of the company, worth about US$70m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About WesBanco Insiders?
It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn’t so positive. We don’t take much heart from transactions by WesBanco insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
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