Several Walmart Co., Ltd. (NYSE:WMT) shareholders might be a little worried after seeing Rachel Brand, Executive Vice President, Global Governance, recently sold US$2.6m worth of stock for US$156 per share . But that sale only accounted for 9.2% of their holdings, which probably doesn’t say much about their beliefs.
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Insider transactions at Walmart over the past 12 months
In fact, our records show that the recent sale by Rachel Brand was the largest sale of Walmart stock made by an insider in the past twelve months. This means that insiders were selling shares around the current price of $156. Insider selling is usually not liked, but it is more concerning when the sale occurs at a lower price. Considering the sale took place at a price close to the current price, we’d be a little cautious, but not a huge concern.
After all, insiders sold more Walmart stock than they bought in the last year. The graph below shows insider transactions (by companies and individuals) over the last year. Click on the chart to see all individual trades, including stock price, individual, and date.
If you like to buy stocks that insiders are buying, rather than selling, you might like this free List of companies. (Hint: Insiders are buying them).
Walmart Insider Ownership
If you are a common shareholder, it may be worth checking how many shares are held by company insiders. A high insider ownership often makes company leaders more focused on shareholder interests. Walmart insiders own 0.9% of the company’s stock, currently worth about US$3.8 billion based on the recent share price. I like to see this level of insider ownership. This is because management is more likely to have the best interests of shareholders in mind.
What can we learn from Walmart’s insider trading?
Insiders recently sold, but did not buy, Walmart stock. Zooming out, the long-term outlook is less reassuring. But it’s good to see Walmart growing its revenue. The company boasts high insider ownership, but we’re a bit hesitant given its history of share sales. We like to know what’s going on with insider ownership and transactions, but we also always consider what risks a stock faces before making any investment decisions.Case in point: we discovered 2 warning signs for Walmart you should know.
However, please note: Walmart may not be the best stock to buy.So take a look at this free List of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. The Company currently only accounts for open market transactions and private dispositions of direct profits, and does not account for derivative transactions or indirect profits.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.