Some Willdan Group, Inc. (NASDAQ:WLDN) shareholders may be a little concerned to see that the Chairman & CEO, Thomas Brisbin, recently sold a substantial US$792k worth of stock at a price of US$46.91 per share. However, that sale only accounted for 4.6% of their holding, so arguably it doesn't say much about their conviction.
Willdan Group Insider Transactions Over The Last Year
Notably, that recent sale by Chairman & CEO Thomas Brisbin was not the only time they sold Willdan Group shares this year. They previously made an even bigger sale of -US$919k worth of shares at a price of US$23.51 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$35.15. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 13%of Thomas Brisbin's holding.
All up, insiders sold more shares in Willdan Group than they bought, over the last year. You can see the insider transactions (by companies and 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Willdan Group Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 6.7% of Willdan Group shares, worth about US$31m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Willdan Group Tell Us?
Insiders sold Willdan Group shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 4 warning signs for Willdan Group you should know about.
But note: Willdan Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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