This Warner Bros. Discovery Insider Reduced Their Stake By 43%

From what we can see, insiders were net sellers in Warner Bros. Discovery, Inc.'s (NASDAQ:WBD ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Warner Bros. Discovery

The President, David Zaslav, made the biggest insider sale in the last 12 months. That single transaction was for US$30m worth of shares at a price of US$11.73 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$8.54. So it may not shed much light on insider confidence at current levels. David Zaslav was the only individual insider to sell over the last year.

Happily, we note that in the last year insiders paid US$1.6m for 175.35k shares. But insiders sold 2.56m shares worth US$30m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Warner Bros. Discovery

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Warner Bros. Discovery Insiders Bought Stock Recently

Over the last quarter, Warner Bros. Discovery insiders have spent a meaningful amount on shares. Independent Chairman of the Board Samuel Di Piazza spent US$198k on stock, and there wasn't any selling. That shows some optimism about the company's future.

Does Warner Bros. Discovery 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. It's great to see that Warner Bros. Discovery insiders own 1.3% of the company, worth about US$273m. 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 Warner Bros. Discovery Tell Us?

The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. The recent buying by an insider , along with high insider ownership, suggest that Warner Bros. Discovery insiders are fairly aligned, and optimistic. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 1 warning sign for Warner Bros. Discovery that deserve your attention before buying any shares.

Of course Warner Bros. Discovery 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.