Possible Signal As Wrkr Insiders Sell AU$979k In Stock

Despite the fact that Wrkr Ltd (ASX:WRK) stock rose 17% last week, insiders who sold AU$979k worth of stock in the previous 12 months are likely to be better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of AU$0.13, which is higher than the current price, may have been the best decision.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Wrkr Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Donald Sharp, for AU$929k worth of shares, at about AU$0.13 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of AU$0.084. So it is hard to draw any strong conclusion from it. Notably Donald Sharp was also the biggest buyer, having purchased AU$449k worth of shares.

Happily, we note that in the last year insiders paid AU$449k for 4.48m shares. But insiders sold 7.81m shares worth AU$979k. All up, insiders sold more shares in Wrkr than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Wrkr

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).

Insiders At Wrkr Have Bought Stock Recently

At Wrkr,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, three insiders bought AU$434k worth of shares in that time. On the other hand, Independent Non-Executive Chairwoman of the Board Emma Dobson netted AU$51k by selling. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Insider Ownership Of Wrkr

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. It appears that Wrkr insiders own 28% of the company, worth about AU$50m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Wrkr Insiders?

It's certainly positive to see the recent insider purchases. But we can't say the same for the transactions over the last 12 months. While recent transactions indicate confidence in Wrkr, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. In short they are likely aligned with shareholders. 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 - Wrkr has 1 warning sign we think you should be aware of.

Of course Wrkr may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.