Insiders were net sellers of WillScot Holdings Corporation's (NASDAQ:WSC ) stock during the past year. That is, insiders sold more stock than they bought.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
WillScot Holdings Insider Transactions Over The Last Year
The Independent Director, Jeffrey Sagansky, made the biggest insider sale in the last 12 months. That single transaction was for US$3.6m worth of shares at a price of US$47.50 each. 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$39.68). So it may not tell us anything about how insiders feel about the current share price. Jeffrey Sagansky was the only individual insider to sell 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like WillScot Holdings 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.
WillScot Holdings Insiders Bought Stock Recently
Over the last quarter, WillScot Holdings insiders have spent a meaningful amount on shares. CEO & Director Bradley Soultz spent US$377k on stock, and there wasn't any selling. That shows some optimism about the company's future.
Insider Ownership Of WillScot Holdings
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that WillScot Holdings insiders own 2.6% of the company, worth about US$194m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The WillScot Holdings Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for WillScot Holdings (1 is significant!) that we believe deserve your full attention.
But note: WillScot Holdings 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
