Possible Bearish Signals With WillScot Mobile Mini Holdings Insiders Disposing Stock

The fact that multiple WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. 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, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for WillScot Mobile Mini Holdings

WillScot Mobile Mini Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Jeffrey Sagansky, sold US$4.7m worth of shares at a price of US$47.18 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 US$41.87. So it may not tell us anything about how insiders feel about the current share price.

All up, insiders sold more shares in WillScot Mobile Mini Holdings than they bought, over the last year. The sellers received a price of around US$47.31, on average. We are not joyful about insider selling. But the selling was at much higher prices than the current share price (US$41.87), so it probably doesn't tell us a lot about the value on offer today. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like WillScot Mobile Mini Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At WillScot Mobile Mini Holdings Have Sold Stock Recently

We've seen more insider selling than insider buying at WillScot Mobile Mini Holdings recently. We note Independent Director Jeffrey Sagansky cashed in US$3.6m worth of shares. On the other hand we note CEO & Director Bradley Soultz bought US$431k worth of shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the company has been fully valued in recent months.

Insider Ownership Of WillScot Mobile Mini Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. WillScot Mobile Mini Holdings insiders own about US$233m worth of shares (which is 3.0% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About WillScot Mobile Mini Holdings Insiders?

The stark truth for WillScot Mobile Mini Holdings is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since WillScot Mobile Mini Holdings is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing WillScot Mobile Mini Holdings. Case in point: We've spotted 2 warning signs for WillScot Mobile Mini Holdings you should be aware of, and 1 of them doesn't sit too well with us.

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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.