Have Insiders Sold Walmart Shares Recently?

We wouldn't blame Walmart Inc. (NYSE:WMT) shareholders if they were a little worried about the fact that Suresh Kumar, the Global CTO recently netted about US$3.1m selling shares at an average price of US$103. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.3%.

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The Last 12 Months Of Insider Transactions At Walmart

The Executive VP of Global Governance, Rachel Brand, made the biggest insider sale in the last 12 months. That single transaction was for US$8.1m worth of shares at a price of US$98.23 each. That means that even when the share price was below the current price of US$103, an insider wanted to cash in some shares. 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. We note that the biggest single sale was only 30% of Rachel Brand's holding.

Over the last year we saw more insider selling of Walmart shares, than buying. 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!

Check out our latest analysis for Walmart

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Insider Ownership Of Walmart

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. Walmart insiders own about US$7.3b worth of shares (which is 0.9% of the company). 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 Does This Data Suggest About Walmart Insiders?

Insiders sold Walmart shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Walmart makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Walmart and understanding it should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.