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Many Wells Fargo & Company (NYSE:WFC) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Wells Fargo
In the last twelve months, the biggest single sale by an insider was when the insider, Ather Williams, sold US$3.8m worth of shares at a price of US$63.70 per share. So what is clear is that an insider saw fit to sell at around the current price of US$62.08. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Wells Fargo insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Wells Fargo
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 Of Wells Fargo
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Wells Fargo insiders own 0.1% of the company, worth about US$258m. 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 Do The Wells Fargo Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Wells Fargo shares in the last quarter. While we feel good about high insider ownership of Wells Fargo, we can't say the same about the selling of shares. 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. In terms of investment risks, we've identified 1 warning sign with Wells Fargo and understanding this should be part of your investment process.