We'd be surprised if Walgreens Boots Alliance, Inc. (NASDAQ:WBA) shareholders haven't noticed that the Executive VP, Marco Patrick Pagni, recently sold US$208k worth of stock at US$41.55 per share. The eyebrow raising move amounted to a reduction of 13% in their holding.
The Last 12 Months Of Insider Transactions At Walgreens Boots Alliance
Notably, that recent sale by Marco Patrick Pagni is the biggest insider sale of Walgreens Boots Alliance shares that we've seen in the last year. That means that even when the share price was below the current price of US$42.71, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. It is worth noting that this sale was only 13% of Marco Patrick Pagni's holding.
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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Walgreens Boots Alliance insiders own 0.4% of the company, worth about US$163m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Walgreens Boots Alliance Insider Transactions Indicate?
An insider hasn't bought Walgreens Boots Alliance stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Case in point: We've spotted 5 warning signs for Walgreens Boots Alliance you should be aware of.
But note: Walgreens Boots Alliance 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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