Have Insiders Been Selling G. Willi-Food International Ltd. (NASDAQ:WILC) Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in G. Willi-Food International Ltd. (NASDAQ:WILC).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for G. Willi-Food International

The Last 12 Months Of Insider Transactions At G. Willi-Food International

Over the last year, we can see that the biggest insider sale was by the Co-Chairman of the Board, Zwi Williger, for US$3.5m worth of shares, at about US$19.30 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$24.92. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 22% of Zwi Williger's holding. Zwi Williger was the only individual insider to sell shares in the last twelve months. Notably Zwi Williger was also the biggest buyer, having purchased US$56k worth of shares.

Zwi Williger divested 250.00k shares over the last 12 months at an average price of ₪19.92. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like G. Willi-Food International better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

G. Willi-Food International Insiders Are Selling The Stock

The last three months saw significant insider selling at G. Willi-Food International. Specifically, Co-Chairman of the Board Zwi Williger ditched US$1.5m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that G. Willi-Food International insiders own 5.3% of the company, worth about US$18m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About G. Willi-Food International Insiders?

An insider hasn't bought G. Willi-Food International stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, G. Willi-Food International makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that G. Willi-Food International has 4 warning signs and it would be unwise to ignore them.

Of course G. Willi-Food 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.

If you’re looking to trade G. Willi-Food International, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.