Have Wingstop Inc. (NASDAQ:WING) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
February 24, 2022
NasdaqGS:WING
Source: Shutterstock

Anyone interested in Wingstop Inc. (NASDAQ:WING) should probably be aware that the Chief People Officer, Donnie Upshaw, recently divested US$121k worth of shares in the company, at an average price of US$155 each. The eyebrow raising move amounted to a reduction of 24% in their holding.

Check out our latest analysis for Wingstop

The Last 12 Months Of Insider Transactions At Wingstop

The Chairman & CEO, Charles Morrison, made the biggest insider sale in the last 12 months. That single transaction was for US$5.1m worth of shares at a price of US$176 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$139). So it is hard to draw any strong conclusion from it.

Insiders in Wingstop didn't buy any shares in 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!

insider-trading-volume
NasdaqGS:WING Insider Trading Volume February 24th 2022

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Wingstop

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Wingstop insiders own 0.5% of the company, worth about US$21m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Wingstop Tell Us?

Insiders sold Wingstop shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Wingstop makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Wingstop. For example, Wingstop has 5 warning signs (and 3 which can't be ignored) we think you should know about.

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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