Yahoo Finance Bullish Walt Disney Insiders Loaded Up On US$2.22m Of Stock
Multiple insiders secured a larger position in The Walt Disney Company (NYSE:DIS) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Walt Disney
The Last 12 Months Of Insider Transactions At Walt Disney
Over the last year, we can see that the biggest insider purchase was by insider James Gorman for US$2.1m worth of shares, at about US$106 per share. That means that even when the share price was higher than US$102 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 21.08k shares worth US$2.2m. But they sold 5.40k shares for US$579k. In the last twelve months there was more buying than selling by Walt Disney insiders. 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!
Walt Disney is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Walt Disney Insiders Bought Stock Recently
At Walt Disney,over the last quarter, we have observed quite a lot more insider buying than insider selling. insider James Gorman spent US$2.1m on stock. On the other hand, Senior EVP & Chief Human Resources Officer Sonia Coleman netted US$466k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Does Walt Disney Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Walt Disney insiders own about US$56m worth of shares. That equates to 0.03% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Walt Disney Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Walt Disney we think they are probably pretty confident of a bright future. While it's good to be aware of 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. At Simply Wall St, we found 2 warning signs for Walt Disney that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
