This Insider Has Just Sold Shares In Walgreens Boots Alliance, Inc. (NASDAQ:WBA)

By
Simply Wall St
Published
November 24, 2021
NasdaqGS:WBA
Source: Shutterstock

We'd be surprised if Walgreens Boots Alliance, Inc. (NASDAQ:WBA) shareholders haven't noticed that the Independent Director, Nancy Schlichting, recently sold US$128k worth of stock at US$47.16 per share. The eyebrow raising move amounted to a reduction of 14% in their holding.

View our latest analysis for Walgreens Boots Alliance

Walgreens Boots Alliance Insider Transactions Over The Last Year

Notably, that recent sale by Nancy Schlichting is the biggest insider sale of Walgreens Boots Alliance shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$46.62. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

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!

insider-trading-volume
NasdaqGS:WBA Insider Trading Volume November 25th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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. It's great to see that Walgreens Boots Alliance insiders own 0.5% of the company, worth about US$200m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Walgreens Boots Alliance Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Walgreens Boots Alliance makes money, and is growing profits. 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. 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. Case in point: We've spotted 1 warning sign for Walgreens Boots Alliance you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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