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Quite a few insiders have dramatically grown their holdings in Wolverine World Wide, Inc. (NYSE:WWW) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Wolverine World Wide
Wolverine World Wide Insider Transactions Over The Last Year
The Independent Director Jeffrey Boromisa made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$10.49 each. That means that even when the share price was higher than US$8.06 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid US$1.4m for 127.30k shares. But insiders sold 3.05k shares worth US$42k. In the last twelve months there was more buying than selling by Wolverine World Wide insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Wolverine World Wide is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Wolverine World Wide Have Bought Stock Recently
Over the last quarter, Wolverine World Wide insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$60k for shares in the company -- and none sold. This makes one think the business has some good points.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Wolverine World Wide insiders own 3.0% of the company, worth about US$18m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Wolverine World Wide Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Wolverine World Wide insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Wolverine World Wide is showing 3 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...