Have Workiva Insiders Been Selling Stock?

Some Workiva Inc. (NYSE:WK) shareholders may be a little concerned to see that the EVP & Chief Sales Officer, Michael Hawkins, recently sold a substantial US$890k worth of stock at a price of US$85.43 per share. That sale reduced their total holding by 15% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Workiva

The Last 12 Months Of Insider Transactions At Workiva

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Suku Radia, sold US$2.4m worth of shares at a price of US$95.00 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$85.87). So it may not tell us anything about how insiders feel about the current share price.

All up, insiders sold more shares in Workiva than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Workiva

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Workiva insiders own about US$530m worth of shares (which is 11% of the company). 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 Workiva Tell Us?

An insider hasn't bought Workiva stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 2 warning signs for Workiva (1 is potentially serious) you should be aware of.

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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.