WEBTOON Entertainment Insiders Added US$1.18m Of Stock To Their Holdings

Over the last year, a good number of insiders have significantly increased their holdings in WEBTOON Entertainment Inc. (NASDAQ:WBTN). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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WEBTOON Entertainment Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Founder Junkoo Kim bought US$510k worth of shares at a price of US$13.07 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$9.08). 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months WEBTOON Entertainment insiders were buying shares, but not selling. The average buy price was around US$11.53. This is nice to see since it implies that insiders might see value around current prices. 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 WEBTOON Entertainment

WEBTOON Entertainment is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of WEBTOON Entertainment

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that WEBTOON Entertainment insiders own about US$7.7m worth of shares (which is 0.7% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About WEBTOON Entertainment Insiders?

It doesn't really mean much that no insider has traded WEBTOON Entertainment shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think WEBTOON Entertainment insiders are doubting the company. 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. While conducting our analysis, we found that WEBTOON Entertainment has 1 warning sign and it would be unwise to ignore it.

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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 of direct interests only, but not derivative transactions or indirect interests.

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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.