Have Insiders Sold World Acceptance Shares Recently?
Anyone interested in World Acceptance Corporation (NASDAQ:WRLD) should probably be aware that the Executive VP, John Calmes, recently divested US$372k worth of shares in the company, at an average price of US$186 each. However, the silver lining is that the sale only reduced their total holding by 4.0%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At World Acceptance
Over the last year, we can see that the biggest insider sale was by the insider, Ravin Prashad, for US$1.5m worth of shares, at about US$168 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$180. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 9.8% of Ravin Prashad's holding.
World Acceptance insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for World Acceptance
I will like World Acceptance better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does World Acceptance Boast High Insider Ownership?
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. World Acceptance insiders own 19% of the company, currently worth about US$151m 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 World Acceptance Insiders?
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Case in point: We've spotted 3 warning signs for World Acceptance you should be aware of, and 1 of these can't be ignored.
But note: World Acceptance 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.