Who Has Been Selling Weight Watchers International, Inc. (NASDAQ:WW) Shares?

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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Weight Watchers International, Inc. (NASDAQ:WW).

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'

Check out our latest analysis for Weight Watchers International

Weight Watchers International Insider Transactions Over The Last Year

The General Counsel & Secretary, Michael Colosi, made the biggest insider sale in the last 12 months. That single transaction was for US$1.8m worth of shares at a price of US$76.27 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$22.54. So it may not shed much light on insider confidence at current levels.

Happily, we note that in the last year insiders paid US$898k for 23000 shares. But insiders sold 66893 shares worth US$4.1m. All up, insiders sold more shares in Weight Watchers International than they bought, over the last year. The sellers received a price of around US$61.04, on average. Insider selling doesn't make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of US$22.54. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqGS:WW Recent Insider Trading, May 13th 2019
NasdaqGS:WW Recent Insider Trading, May 13th 2019

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 Weight Watchers International Have Sold Stock Recently

Over the last three months, we've seen notably more insider selling, than insider buying, at Weight Watchers International. We note Michael Colosi cashed in US$379k worth of shares. On the other hand we note President Mindy Grossman bought US$260k worth of shares. The share price has moved a bit recently, but it's hard to argue that the selling is a positive.

Insider Ownership of Weight Watchers International

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Weight Watchers International insiders own 8.7% of the company, currently worth about US$132m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Weight Watchers International Insiders?

The insider sales have outweighed the insider buying, at Weight Watchers International, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Weight Watchers International.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.