Trade Alert: Group COO & Executive Director Of Woolworths Holdings Samuel Ngumeni Has Sold Stock

Some Woolworths Holdings Limited (JSE:WHL) shareholders may be a little concerned to see that the Group COO & Executive Director, Samuel Ngumeni, recently sold a substantial R38m worth of stock at a price of R65.84 per share. That's a big disposal, and it decreased their holding size by 27%, which is notable but not too bad.

View our latest analysis for Woolworths Holdings

Woolworths Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Samuel Ngumeni was the biggest sale of Woolworths Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of R67.00, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 27% of Samuel Ngumeni's holding.

Woolworths Holdings 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

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. Insiders own 0.7% of Woolworths Holdings shares, worth about R437m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Woolworths Holdings Tell Us?

An insider sold Woolworths Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Case in point: We've spotted 4 warning signs for Woolworths Holdings 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.