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Investors who take an interest in WeWork Inc. (NYSE:WE) should definitely note that the CEO & Director, Sandeep Mathrani, recently paid US$6.55 per share to buy US$197k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.8%.
View our latest analysis for WeWork
WeWork Insider Transactions Over The Last Year
In fact, the recent purchase by CEO & Director Sandeep Mathrani was not their only acquisition of WeWork shares this year. Earlier in the year, they paid US$8.46 per share in a US$250k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$6.80). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months WeWork insiders were buying shares, but not selling. 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!
WeWork is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does WeWork Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. WeWork insiders own 4.4% of the company, currently worth about US$218m 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 WeWork Tell Us?
It is good to see the recent insider purchase. 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 WeWork insiders are well aligned, and quite possibly think the share price is too low. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing WeWork. Every company has risks, and we've spotted 4 warning signs for WeWork (of which 3 are potentially serious!) you should know about.