Have Insiders Sold Western Digital Shares Recently?
Some Western Digital Corporation (NASDAQ:WDC) shareholders may be a little concerned to see that the Lead Independent Director, Stephanie Streeter, recently sold a substantial US$2.5m worth of stock at a price of US$450 per share. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.
Western Digital Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Executive VP & Chief of Global Operations, Vidyadhara Gubbi, sold US$3.7m worth of shares at a price of US$169 per share. That means that even when the share price was below the current price of US$442, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 15% of Vidyadhara Gubbi's stake.
In the last year Western Digital 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!
View our latest analysis for Western Digital
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
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. Western Digital insiders own 0.6% of the company, currently worth about US$915m 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.
What Might The Insider Transactions At Western Digital Tell Us?
An insider hasn't bought Western Digital stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that Western Digital is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Western Digital. At Simply Wall St, we've found that Western Digital has 2 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.
Of course Western Digital 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.