Have Walmart Insiders Been Selling Stock?

We wouldn't blame Walmart Inc. (NASDAQ:WMT) shareholders if they were a little worried about the fact that Latriece Watkins, a company insider, recently netted about US$1.3m selling shares at an average price of US$119. That sale reduced their total holding by 10% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Walmart

Over the last year, we can see that the biggest insider sale was by the insider, Christopher Nicholas, for US$4.2m worth of shares, at about US$122 per share. That means that an insider was selling shares at around the current price of US$113. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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.

In the last year Walmart insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Walmart

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Walmart

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Walmart insiders own 1.0% of the company, currently worth about US$8.8b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Walmart Tell Us?

An insider hasn't bought Walmart stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Walmart is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Walmart has 2 warning signs we think you should be aware of.

But note: Walmart may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.