John Wiley & Sons, Inc. (NYSE:WLY) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a US$224m rise in the company's market capitalisation, translating to a gain of 23% on their initial investment. As a result, their original purchase of US$749.4k worth of stock is now worth US$919.0k.
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.
The Last 12 Months Of Insider Transactions At John Wiley & Sons
In the last twelve months, the biggest single purchase by an insider was when Interim President Matthew Kissner bought US$502k worth of shares at a price of US$30.33 per share. We do like to see buying, but this purchase was made at well below the current price of US$37.31. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid US$749k for 24.63k shares. But insiders sold 8.44k shares worth US$290k. In total, John Wiley & Sons insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
John Wiley & Sons is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At John Wiley & Sons Have Sold Stock Recently
The last three months saw significant insider selling at John Wiley & Sons. In total, Executive VP & GM of Talent Todd Zipper dumped US$122k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership Of John Wiley & Sons
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. John Wiley & Sons insiders own 7.4% of the company, currently worth about US$151m based on the recent share price. 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 John Wiley & Sons Tell Us?
An insider sold stock recently, but they haven't been buying. But we take heart from prior transactions. 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. For example - John Wiley & Sons has 2 warning signs we think you should be aware of.
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 of direct interests only, but not derivative transactions or indirect interests.
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