Selling Perella Weinberg Partners Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Perella Weinberg Partners LP's (NASDAQ:PWP) stock price has dropped 14% in the previous week, but insiders who sold US$19m in stock over the past year have had less luck. Given that the average selling price of US$24.50 is still lower than the current share price, insiders would probably have been better off keeping their shares.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Perella Weinberg Partners Insider Transactions Over The Last Year

The Partner of London, Dietrich Becker, made the biggest insider sale in the last 12 months. That single transaction was for US$11m worth of shares at a price of US$24.48 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$15.89. So it may not shed much light on insider confidence at current levels.

Insiders in Perella Weinberg Partners didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Perella Weinberg Partners

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Perella Weinberg Partners

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Perella Weinberg Partners insiders own 1.7% of the company, worth about US$24m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Perella Weinberg Partners Insiders?

It doesn't really mean much that no insider has traded Perella Weinberg Partners shares in the last quarter. Still, the insider transactions at Perella Weinberg Partners in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 2 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Perella Weinberg Partners.

But note: Perella Weinberg Partners 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.