Some WESCO International, Inc. (NYSE:WCC) shareholders may be a little concerned to see that the Executive VP and GM of Utility & Broadband Solutions Division (UBS), James Cameron, recently sold a substantial US$837k worth of stock at a price of US$156 per share. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.
WESCO International Insider Transactions Over The Last Year
The Executive Vice President of Supply Chain & Operations, Hemant Porwal, made the biggest insider sale in the last 12 months. That single transaction was for US$2.0m worth of shares at a price of US$155 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$160. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 53% of Hemant Porwal's stake.
Insiders in WESCO International didn't buy any shares in the last year. 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!
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Does WESCO International Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. WESCO International insiders own about US$140m worth of shares (which is 1.7% 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 WESCO International Tell Us?
An insider hasn't bought WESCO International stock in the last three months, but there was some selling. 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. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 2 warning signs for WESCO International (1 is potentially serious!) and we strongly recommend you look at these before investing.
Of course WESCO 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.