Have World Acceptance Insiders Been Selling Stock?

We wouldn't blame World Acceptance Corporation (NASDAQ:WRLD) shareholders if they were a little worried about the fact that Ravin Prashad, the President recently netted about US$1.5m selling shares at an average price of US$166. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 9.8%.

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The Last 12 Months Of Insider Transactions At World Acceptance

In fact, the recent sale by Ravin Prashad was the biggest sale of World Acceptance shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$168. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last year World Acceptance insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for World Acceptance

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Insider Ownership

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's great to see that World Acceptance insiders own 18% of the company, worth about US$158m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About World Acceptance Insiders?

Insiders sold World Acceptance 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, World Acceptance makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For example, World Acceptance has 3 warning signs (and 1 which is potentially serious) we think you should know about.

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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.