We wouldn't blame The Williams Companies, Inc. (NYSE:WMB) shareholders if they were a little worried about the fact that Debbie Pickle, the Senior VP & Chief Human Resource Officer recently netted about US$1.5m selling shares at an average price of US$39.61. That's a big disposal, and it decreased their holding size by 39%, which is notable but not too bad.
Williams Companies Insider Transactions Over The Last Year
Notably, that recent sale by Senior VP & Chief Human Resource Officer Debbie Pickle was not the only time they sold Williams Companies shares this year. They previously made an even bigger sale of -US$2.2m worth of shares at a price of US$35.61 per share. That means that an insider was selling shares at slightly below the current price (US$39.64). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 50%of Debbie Pickle's holding.
Insiders in Williams Companies 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. By clicking on the graph below, you can see the precise details of each insider transaction!
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Does Williams Companies 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. Williams Companies insiders own about US$253m worth of shares (which is 0.5% 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.
So What Do The Williams Companies Insider Transactions Indicate?
Insiders haven't bought Williams Companies stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Williams Companies makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Every company has risks, and we've spotted 2 warning signs for Williams Companies you should know about.
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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.