A number of John Wiley & Sons, Inc. (NYSE:WLY) insiders sold their shares in the last year, which may have raised concerns among investors. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.
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.
The Last 12 Months Of Insider Transactions At John Wiley & Sons
Over the last year, we can see that the biggest insider purchase was by President Matthew Kissner for US$502k worth of shares, at about US$30.33 per share. Even though the purchase was made at a significantly lower price than the recent price (US$43.15), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid US$654k for 21.63k shares. But they sold 37.19k shares for US$1.4m. In total, John Wiley & Sons insiders sold more than they bought over the last year. 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!
I will like John Wiley & Sons better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
John Wiley & Sons Insiders Are Selling The Stock
The last quarter saw substantial insider selling of John Wiley & Sons shares. Specifically, insiders ditched US$695k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership Of John Wiley & Sons
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. John Wiley & Sons insiders own about US$157m worth of shares (which is 6.7% 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 John Wiley & Sons Insiders?
Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing John Wiley & Sons. You'd be interested to know, that we found 3 warning signs for John Wiley & Sons and we suggest you have a look.
Of course John Wiley & Sons 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.
