Trade Alert: Executive VP & Chief Commercial Officer Of Weatherford International David Reed Has Sold Stock

We wouldn't blame Weatherford International plc (NASDAQ:WFRD) shareholders if they were a little worried about the fact that David Reed, the Executive VP & Chief Commercial Officer recently netted about US$639k selling shares at an average price of US$93.96. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for Weatherford International

Weatherford International Insider Transactions Over The Last Year

The President, Girishchandra Saligram, made the biggest insider sale in the last 12 months. That single transaction was for US$6.2m worth of shares at a price of US$105 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$90.95. So it is hard to draw any strong conclusion from it.

Weatherford International insiders didn't buy any shares over the last year. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Weatherford International

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Weatherford International insiders own 1.9% of the company, currently worth about US$126m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Weatherford International Tell Us?

An insider sold Weatherford International shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Weatherford International is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Weatherford International and understanding these should be part of your investment process.

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.