Insiders Sold WW International At US$7.11, Meanwhile Stock Sits Near US$0.72

WW International, Inc.'s (NASDAQ:WW) value has fallen 15% in the last week, but insiders who sold US$327k worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$7.11 is still lower than the current share price.

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 WW International

The Last 12 Months Of Insider Transactions At WW International

In the last twelve months, the biggest single sale by an insider was when the insider, Michael Colosi, sold US$327k worth of shares at a price of US$7.22 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$0.72). So it is hard to draw any strong conclusion from it. Michael Colosi was the only individual insider to sell over the last year.

Happily, we note that in the last year insiders paid US$98k for 129.50k shares. But insiders sold 45.90k shares worth US$327k. 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 are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

WW International Insiders Bought Stock Recently

Over the last quarter, WW International insiders have spent a meaningful amount on shares. In total, insiders bought US$98k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Does WW International 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. Based on our data, WW International insiders have about 1.1% of the stock, worth approximately US$683k. We prefer to see high levels of insider ownership.

So What Do The WW International Insider Transactions Indicate?

The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. The transactions over the last year don't give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that WW International is showing 3 warning signs in our investment analysis, and 2 of those make us uncomfortable...

But note: WW International 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.

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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.