Yahoo Finance Insider Buying: The Wells Fargo & Company (NYSE:WFC) President Just Bought US$5.0m Worth Of Shares
Wells Fargo & Company (NYSE:WFC) shareholders (or potential shareholders) will be happy to see that the President, Charles Scharf, recently bought a whopping US$5.0m worth of stock, at a price of US$28.69. That increased their holding by a full 4305%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
View our latest analysis for Wells Fargo
The Last 12 Months Of Insider Transactions At Wells Fargo
In fact, the recent purchase by Charles Scharf was the biggest purchase of Wells Fargo shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$26.50 (the recent price), an insider wanted to purchase shares. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 204.10k shares for US$6.0m. But insiders sold 28304 shares worth US$1.3m. Overall, Wells Fargo insiders were net buyers last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Wells Fargo Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Wells Fargo insiders own 0.1% of the company, worth about US$141m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Wells Fargo Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Wells Fargo. One for the watchlist, at least! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 2 warning signs we've spotted with Wells Fargo (including 1 which is a bit unpleasant).
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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