We'd be surprised if Willis Towers Watson Public Limited Company (NASDAQ:WLTW) shareholders haven't noticed that an insider, Paul Thomas, recently sold US$446k worth of stock at US$190 per share. That sale was 19% of their holding, so it does make us raise an eyebrow.
Willis Towers Watson Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Julie Gebauer, sold US$1.6m worth of shares at a price of US$160 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$185. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 11% of Julie Gebauer's holding.
In the last twelve months insiders netted US$4.3m for 24569.07 shares sold. In the last year Willis Towers Watson insiders didn't buy any company stock. You can see the insider transactions (by 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Willis Towers Watson
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Willis Towers Watson insiders own about US$103m worth of shares (which is 0.4% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Willis Towers Watson Tell Us?
Insiders sold Willis Towers Watson shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Willis Towers Watson makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.