This Insider Has Just Sold Shares In Weatherford International

We wouldn't blame Weatherford International plc (NASDAQ:WFRD) shareholders if they were a little worried about the fact that Charles Sledge, the Independent Non-Executive Chairman of the Board recently netted about US$1.2m selling shares at an average price of US$123. That's a big disposal, and it decreased their holding size by 23%, which is notable but not too bad.

See our latest analysis for Weatherford International

Weatherford International Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the President, Girishchandra Saligram, for US$6.2m worth of shares, at about US$105 per share. That means that an insider was selling shares at slightly below the current price (US$128). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 6.5% of Girishchandra Saligram's holding.

Insiders in Weatherford International 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. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Weatherford International better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of Weatherford International

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. Weatherford International insiders own 1.9% of the company, currently worth about US$179m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Weatherford International Insider Transactions Indicate?

Insiders haven't bought Weatherford International stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Weatherford International makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing 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. You'd be interested to know, that we found 2 warning signs for Weatherford International and we suggest you have a look.

Of course Weatherford International may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.