We wouldn't blame The Walt Disney Company (NYSE:DIS) shareholders if they were a little worried about the fact that Susan Arnold, the Independent Lead Director recently netted about US$1.5m selling shares at an average price of US$178. That sale reduced their total holding by 17% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Walt Disney
Notably, that recent sale by Susan Arnold is the biggest insider sale of Walt Disney shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$176. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Walt Disney 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Walt Disney insiders own about US$291m worth of shares (which is 0.09% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Walt Disney Insiders?
An insider sold Walt Disney shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Walt Disney. To that end, you should learn about the 2 warning signs we've spotted with Walt Disney (including 1 which can't be ignored).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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