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Have Watsco, Inc. (NYSE:WSO) Insiders Been Selling Their Stock?

Simply Wall St

Investors may wish to note that the Independent Director of Watsco, Inc., George Sape, recently netted US$96k from selling stock, receiving an average price of US$175. On the bright side, that's just a small sale and only reduced their holding by 6.4%.

Check out our latest analysis for Watsco

The Last 12 Months Of Insider Transactions At Watsco

The Executive VP of Planning & Strategy and Secretary, Barry Logan, made the biggest insider sale in the last 12 months. That single transaction was for US$353k worth of shares at a price of US$141 each. That means that even when the share price was below the current price of US$175, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 2.0% of Barry Logan's holding.

In the last twelve months insiders netted US$449k for 3050 shares sold. Insiders in Watsco didn't buy any shares in the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:WSO Recent Insider Trading, October 25th 2019

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Watsco

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Watsco insiders own about US$616m worth of shares (which is 9.3% 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 Do The Watsco Insider Transactions Indicate?

An insider sold Watsco shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Of course, the future is what matters most. So if you are interested in Watsco, you should check out this free report on analyst forecasts for the company.

But note: Watsco 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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.