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WW International's Stock Sinks To US$1.87, But Insiders Sold Even Lower

Simply Wall St ·  Mar 15 07:08

Despite the fact that WW International, Inc.'s (NASDAQ:WW) value has dropped 37% in the last week insiders who sold US$327k worth of stock in the past 12 months have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of US$7.11 is still below the current share price.

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 WW International

In the last twelve months, the biggest single sale by an insider was when the insider, Michael Colosi, sold US$327k worth of shares at a price of US$7.22 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$1.87. So it may not tell us anything about how insiders feel about the current share price. Michael Colosi was the only individual insider to sell over the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:WW Insider Trading Volume March 15th 2024

I will like WW International better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does WW International Boast High Insider Ownership?

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. From looking at our data, insiders own US$2.6m worth of WW International stock, about 1.4% of the company. We prefer to see high levels of insider ownership.

So What Do The WW International Insider Transactions Indicate?

It doesn't really mean much that no insider has traded WW International shares in the last quarter. Our analysis of WW International insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for WW International you should be aware of, and 1 of them makes us a bit uncomfortable.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

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