13% Of This WD-40 Insider's Holdings Were Sold

From what we can see, insiders were net sellers in WD-40 Company's (NASDAQ:WDFC ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for WD-40

WD-40 Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Group Managing Director of EIMEA & Emerging Markets, William Noble, sold US$290k worth of shares at a price of US$290 per share. So what is clear is that an insider saw fit to sell at around the current price of US$274. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. The only individual insider seller over the last year was William Noble.

Happily, we note that in the last year insiders paid US$276k for 1.16k shares. But they sold 1.80k shares for US$495k. William Noble sold a total of 1.80k shares over the year at an average price of US$275. 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!

I will like WD-40 better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At WD-40 Have Sold Stock Recently

The last quarter saw substantial insider selling of WD-40 shares. In total, Group Managing Director of EIMEA & Emerging Markets William Noble dumped US$495k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does WD-40 Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.3% of WD-40 shares, worth about US$11m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The WD-40 Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that WD-40 is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing WD-40. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of WD-40.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.