We wouldn't blame Wilhelmina International, Inc. (NASDAQ:WHLM) shareholders if they were a little worried about the fact that Ralph Bartel, a company insider, recently netted about US$7.4m selling shares at an average price of US$12.70. Probably the most concerning element of the whole transaction is that the disposal amounted to 63% of their entire holding.
Wilhelmina International Insider Transactions Over The Last Year
In fact, the recent sale by Ralph Bartel was the biggest sale of Wilhelmina International shares made by an insider individual in the last twelve months, according to our records. 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 (US$7.03). So it may not tell us anything about how insiders feel about the current share price.
Ralph Bartel ditched 596.96k shares over the year. The average price per share was US$12.63. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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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. Wilhelmina International insiders own about US$13m worth of shares. That equates to 36% 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 Do The Wilhelmina International Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Wilhelmina International, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Wilhelmina International has 3 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.
Of course Wilhelmina International 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.
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