WW International, Inc.'s (NASDAQ:WW) stock rose 106% last week, but insiders who sold US$327k worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$7.11, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

The Last 12 Months Of Insider Transactions At WW International

The insider, Michael Colosi, made the biggest insider sale in the last 12 months. That single transaction was for US$327k worth of shares at a price of US$7.22 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$1.60). So it is hard to draw any strong conclusion from it. Michael Colosi was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 129.50k shares for US$98k. On the other hand they divested 45.90k shares, for US$327k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

WW International Insiders Bought Stock Recently

It's good to see that WW International insiders have made notable investments in the company's shares. In total, insiders bought US$98k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Our data suggests WW International insiders own 1.2% of the company, worth about US$1.1m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About WW International Insiders?

It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn't so positive. We're not thrilled with the relatively low insider ownership and the longer term transaction history. But we like the recent purchasing. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, WW International has 3 warning signs (and 2 which are potentially serious) we think you should know about.

Of course WW International 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.