Don't Ignore The Insider Selling In World Acceptance

Anyone interested in World Acceptance Corporation (NASDAQ:WRLD) should probably be aware that the Senior Vice President of Human Resources, Alice Caulder, recently divested US$152k worth of shares in the company, at an average price of US$150 each. On the bright side, that sale was only 8.9% of their holding, so we doubt it's very meaningful, on its own.

We've discovered 3 warning signs about World Acceptance. View them for free.

The Last 12 Months Of Insider Transactions At World Acceptance

In the last twelve months, the biggest single sale by an insider was when the Senior Vice President of Accounting, Scott McIntyre, sold US$300k worth of shares at a price of US$151 per share. So what is clear is that an insider saw fit to sell at around the current price of US$143. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

World Acceptance insiders didn't buy any shares over 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!

View our latest analysis for World Acceptance

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. World Acceptance insiders own about US$119m worth of shares (which is 16% of the company). 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 World Acceptance Insiders?

An insider hasn't bought World Acceptance stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since World Acceptance is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing World Acceptance. Case in point: We've spotted 3 warning signs for World Acceptance you should be aware of, and 1 of them is potentially serious.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.