Insiders Could Have Profited By Holding onto Wag! Group Shares Despite 11% Drop

Despite the fact that Wag! Group Co.'s (NASDAQ:PET) value has dropped 11% in the last week insiders who sold US$812k worth of stock in the past 12 months have had less success. The average selling price of US$1.54 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Wag! Group

The Last 12 Months Of Insider Transactions At Wag! Group

The insider John Szabo made the biggest insider purchase in the last 12 months. That single transaction was for US$183k worth of shares at a price of US$1.41 each. That means that even when the share price was higher than US$0.75 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 147.70k shares worth US$215k. On the other hand they divested 526.81k shares, for US$812k. In total, Wag! Group insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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: Most of them are flying under the radar).

Have Wag! Group Insiders Traded Recently?

We have seen a bit of insider selling at Wag! Group, over the last three months. US$192k worth of shares were sold by insiders. But the good news is that insider John Szabo bought US$183k worth. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Does Wag! 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Wag! Group insiders own 7.2% of the company, worth about US$2.6m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Wag! Group Insiders?

Insider selling has just outweighed insider buying in the last three months. But the difference is small, and thus, not concerning. Recent insider selling makes us a little nervous, in light of the broader picture of Wag! Group insider transactions. And usually insiders own more stock in the company, according to our data. While it's good to be aware of 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. Every company has risks, and we've spotted 4 warning signs for Wag! Group (of which 1 can't be ignored!) you should know about.

But note: Wag! 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 of direct interests only, but not derivative transactions or indirect interests.

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

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.