Don’t Ignore The Fact That This Insider Just Sold Some Shares In Workiva Inc. (NYSE:WK) – Simply Wall St

We wouldn’t blame Workiva Inc. (NYSE:WK) shareholders if they were a little worried about the fact that Mithun Banarjee, the Executive VP & Chief Customer Officer recently netted about US$1.2m selling shares at an average price of US$97.64. That’s a big disposal, and it decreased their holding size by 10%, which is notable but not too bad.

Check out our latest analysis for Workiva

Workiva Insider Transactions Over The Last Year

The insider, J. Miller, made the biggest insider sale in the last 12 months. That single transaction was for US$1.9m worth of shares at a price of US$59.98 each. That means that an insider was selling shares at slightly below the current price (US$91.09). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. We note that the biggest single sale was only 22% of J. Miller’s holding.

In the last year Workiva insiders didn’t buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume

NYSE:WK Insider Trading Volume March 19th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Workiva Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. Workiva insiders own 22% of the company, currently worth about US$997m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Workiva Tell Us?

Insiders haven’t bought Workiva stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn’t show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Workiva. Our analysis shows 5 warning signs for Workiva (1 doesn’t sit too well with us!) and we strongly recommend you look at these before investing.

Of course Workiva 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, but not derivative transactions.

Promoted
When trading Workiva or any other investment, use the platform considered by many to be the Professional’s Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.

This article by Simply Wall St is general in nature. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Leave a Reply

Your email address will not be published. Required fields are marked *