Some Willis Lease Finance Corporation (NASDAQ:WLFC) shareholders may be a little concerned to see that the President, Brian Hole, recently sold a substantial US$756k worth of stock at a price of US$133 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.0%.
The Founder & Executive Chairman, Charles Willis, made the biggest insider sale in the last 12 months. That single transaction was for US$10m worth of shares at a price of US$229 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$132. So it may not shed much light on insider confidence at current levels.
In the last year Willis Lease Finance insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Willis Lease Finance
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
For a common shareholder, it is worth checking how many shares are held by company 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. Willis Lease Finance insiders own about US$261m worth of shares (which is 28% 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.
Insiders sold Willis Lease Finance shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Willis Lease Finance is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Willis Lease Finance has 2 warning signs (and 1 which is significant) we think you should know about.
But note: Willis Lease Finance may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.