Insiders who sold Worthington Industries, Inc. (NYSE:WOR) earlier this year probably made the right call as market cap dropped by US$79m

Published
June 21, 2022
NYSE:WOR
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Over the past year, insiders sold US$433k worth of Worthington Industries, Inc. (NYSE:WOR) stock at an average price of US$61.61 per share allowing them to get the most out of their money. After the stock price dropped 3.8% last week, the company's market value declined by US$79m, but insiders were able to mitigate their losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Worthington Industries

Worthington Industries Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive VP & COO, Geoffrey Gilmore, sold US$246k worth of shares at a price of US$61.00 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$40.41. So it is hard to draw any strong conclusion from it.

Worthington Industries insiders didn't buy any shares over 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!

insider-trading-volume
NYSE:WOR Insider Trading Volume June 21st 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Worthington Industries Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Worthington Industries insiders own 37% of the company, worth about US$758m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Worthington Industries Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Worthington Industries insider transactions don't fill us with confidence. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 6 warning signs for Worthington Industries (3 shouldn't be ignored) you should be aware of.

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, but not derivative transactions.

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