Last week, John Wiley & Sons, Inc. (NYSE:WLY) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 15% last week, resulting in a US$290m increase in the company's market worth, implying a 34% gain on their initial purchase. As a result, the stock they originally bought for US$749.4k is now worth US$1.01m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
John Wiley & Sons Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Interim President Matthew Kissner for US$502k worth of shares, at about US$30.33 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$40.90. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 24.63k shares worth US$749k. But they sold 19.66k shares for US$676k. Overall, John Wiley & Sons insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
John Wiley & Sons Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at John Wiley & Sons. In total, insiders sold US$371k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Does John Wiley & Sons Boast High Insider Ownership?
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$149m worth of shares (which is 6.6% 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 John Wiley & Sons shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. 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. Be aware that John Wiley & Sons is showing 4 warning signs in our investment analysis, and 1 of those is concerning...
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com