It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Worthington Industries, Inc. (NYSE:WOR).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
The Last 12 Months Of Insider Transactions At Worthington Industries
Over the last year, we can see that the biggest insider sale was by Chairman of the Board & CEO John McConnell for US$4.6m worth of shares, at about US$46.00 per share. That is hardly a positive sign, even though it took place above the latest price (US$36.07). So it may not shed much light on insider confidence at current levels.
In the last twelve months insiders purchased 28.00k shares for US$1.0m. But they sold 118.95k for US$5.5m. In total, Worthington Industries insiders sold more than they bought over the last year. They sold for an average price of about US$46.13. Insider selling doesn’t make us excited to buy. However, we do note that the average sale price was significantly higher than the current share price (which is US$36.07). The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Worthington Industries Insiders Bought Stock Recently
Over the last quarter, Worthington Industries insiders have spent a meaningful amount on shares. Specifically, John Blystone bought US$917k worth of shares in that time, and we didn’t record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Does Worthington Industries Boast High 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. I reckon it’s a good sign if insiders own a significant number of shares in the company. Worthington Industries insiders own 12% of the company, currently worth about US$240m 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.
What Might The Insider Transactions At Worthington Industries Tell Us?
It is good to see recent insider purchase. On the other hand the transaction history, over the last year, isn’t so positive. Overall, we’d prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Worthington Industries insiders are reasonably well aligned, and optimistic for the future. Of course, the future is what matters most. So if you are interested in Worthington Industries, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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