Martin Agard Is The Executive VP & CFO of Welbilt, Inc. (NYSE:WBT) And They Just Spent US$197k On Shares

Investors who take an interest in Welbilt, Inc. (NYSE:WBT) should definitely note that the Executive VP & CFO, Martin Agard, recently paid US$9.86 per share to buy US$197k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 66%, potentially signalling some real optimism.

See our latest analysis for Welbilt

Welbilt Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President William Johnson for US$200k worth of shares, at about US$14.82 per share. That means that an insider was happy to buy shares at above the current price of US$8.48. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid US$397k for 33.50k shares. On the other hand they divested 10950 shares, for US$201k. In total, Welbilt insiders bought more than they sold over the last year. They paid about US$11.86 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Welbilt

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Welbilt insiders own 0.4% of the company, worth about US$4.9m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Welbilt Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Welbilt insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for Welbilt (of which 2 shouldn't be ignored!) you should know about.

Of course Welbilt may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.