Canada markets closed
  • S&P/TSX

    20,628.92
    -129.42 (-0.62%)
     
  • S&P 500

    4,111.08
    -25.40 (-0.61%)
     
  • DOW

    33,891.02
    -34.99 (-0.10%)
     
  • CAD/USD

    0.7438
    -0.0029 (-0.39%)
     
  • CRUDE OIL

    74.40
    +0.29 (+0.39%)
     
  • BTC-CAD

    30,527.95
    -549.79 (-1.77%)
     
  • CMC Crypto 200

    527.84
    +2.70 (+0.51%)
     
  • GOLD FUTURES

    1,880.70
    +1.20 (+0.06%)
     
  • RUSSELL 2000

    1,957.72
    -27.82 (-1.40%)
     
  • 10-Yr Bond

    3.6340
    +0.1020 (+2.89%)
     
  • NASDAQ futures

    12,523.00
    +7.50 (+0.06%)
     
  • VOLATILITY

    19.43
    +1.10 (+6.00%)
     
  • FTSE

    7,836.71
    -65.09 (-0.82%)
     
  • NIKKEI 225

    27,693.65
    +184.19 (+0.67%)
     
  • CAD/EUR

    0.6931
    +0.0018 (+0.26%)
     

A Wells Fargo & Company (NYSE:WFC) insider lowered their holding by 51% earlier this year

Looking at Wells Fargo & Company's (NYSE:WFC ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

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.

View our latest analysis for Wells Fargo

The Last 12 Months Of Insider Transactions At Wells Fargo

Over the last year, we can see that the biggest insider sale was by the insider, Kleber Santos, for US$1.0m worth of shares, at about US$44.44 per share. That means that even when the share price was below the current price of US$46.98, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 51% of Kleber Santos's stake. The only individual insider seller over the last year was Kleber Santos.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Wells Fargo insiders own 0.06% of the company, worth about US$105m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all 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 these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Wells Fargo you should be aware of.

Of course Wells Fargo 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.

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

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here