The Western Union Company (NYSE:WU) Insiders who bought stocks over the past year were handsomely rewarded last week. The stock rose 8.1%, leading to a $402 million increase in the company’s market capitalization. In other words, the original purchase of US$99,000 is now worth US$107,000.
While we would never suggest that investors base their decisions solely on what a company’s directors have done, we think it makes perfect sense to keep tabs on what insiders are doing.
Check out our latest analysis for Western Union
The last 12 months of insider trading at Western Union
Notably, this recent buy by Jeffrey Joerres is the biggest insider buy of Western Union stock we’ve seen in the past year. This implies that an insider found the current price of US$13.85 per share attractive. Although their perspective has changed since the purchase, it at least suggests that they have confidence in the future of the company. While we always like to see insider buys, it makes less sense if the buys were made at much lower prices, as the opportunity they saw may have passed. Fortunately, the Western Union insider decided to buy shares at prices close to current prices. The only individual insider to buy in the past year was Jeffrey Joerres.
You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you want to know exactly who sold, how much and when, just click on the chart below!
Western Union isn’t the only stock insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.
Does Western Union boast of high insider ownership?
I like to look at how many shares insiders own in a company, to help me get a sense of how aligned they are with insiders. High insider participation often makes company management more concerned with the interests of shareholders. It appears that Western Union insiders own 0.7% of the company, worth around $38 million. While this is a high but not exceptional level of insider ownership, it suffices to indicate some alignment between management and small shareholders.
What could insider trading at Western Union tell us?
The recent insider buying is encouraging. And an analysis of last year’s transactions also gives us confidence. Given that insiders also own a good chunk of Western Union, we think they’re probably pretty confident of a bright future. So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. Every business has risks, and we’ve spotted 2 warning signs for Western Union (1 of which is a little unpleasant!) that you should know about.
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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