Stock Analysis

With Williams-Sonoma, Inc.'s (NYSE:WSM)) price down 4.0% this week, insiders might find some solace having sold US$5.4m worth of shares earlier this year.

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Insiders seem to have made the most of their holdings by selling US$5.4m worth of Williams-Sonoma, Inc. (NYSE:WSM) stock at an average sell price of US$137 during the past year. The company's market worth decreased by US$330m over the past week after the stock price dropped 4.0%, although insiders were able to minimize their losses

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Williams-Sonoma

Williams-Sonoma Insider Transactions Over The Last Year

The CEO & President of Pottery Barn Brands, Marta Benson, made the biggest insider sale in the last 12 months. That single transaction was for US$1.8m worth of shares at a price of US$149 each. While we don't usually like to see insider selling, it's more concerning if the sales take place 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$119. So it may not shed much light on insider confidence at current levels.

Insiders in Williams-Sonoma didn't buy any shares in 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!

NYSE:WSM Insider Trading Volume March 15th 2023

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

Insider Ownership Of Williams-Sonoma

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 Williams-Sonoma insiders own 1.4% of the company, worth about US$108m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Williams-Sonoma Tell Us?

The fact that there have been no Williams-Sonoma insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Williams-Sonoma insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Williams-Sonoma. For example - Williams-Sonoma has 2 warning signs we think you should be aware of.

But note: Williams-Sonoma may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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