Winnebago Industries Insiders Sold US$950k Of Shares Suggesting Hesitancy

The fact that multiple Winnebago Industries, Inc. (NYSE:WGO) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Winnebago Industries

In the last twelve months, the biggest single sale by an insider was when the SVP, Chief Human Resources Officer and Chief of Staff & Corporate Administration, Bret Woodson, sold US$690k worth of shares at a price of US$56.64 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$33.11). So it is hard to draw any strong conclusion from it.

Over the last year, we can see that insiders have bought 13.04k shares worth US$542k. But they sold 17.02k shares for US$950k. All up, insiders sold more shares in Winnebago Industries than they bought, over the last year. The sellers received a price of around US$55.81, on average. Insider selling doesn't make us excited to buy. However, we do note that the average sale price was significantly higher than the current share price (which is US$33.11). 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!

See our latest analysis for Winnebago Industries

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Insiders At Winnebago Industries Have Bought Stock Recently

Over the last quarter, Winnebago Industries insiders have spent a meaningful amount on shares. In total, insiders bought US$294k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Does Winnebago Industries Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Winnebago Industries insiders own about US$35m worth of shares. That equates to 3.6% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Winnebago Industries Tell Us?

It is good to see recent purchasing. But we can't say the same for the transactions over the last 12 months. The more recent transactions are a positive, but Winnebago Industries insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Winnebago Industries. For example - Winnebago Industries has 1 warning sign we think you should be aware of.

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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.