We wouldn't blame WESCO International, Inc. (NYSE:WCC) shareholders if they were a little worried about the fact that Dirk Naylor, the Executive VP and GM of Communications & Security Solutions recently netted about US$1.4m selling shares at an average price of US$351. That sale reduced their total holding by 31% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At WESCO International

The Executive VP & General Counsel, Diane Lazzaris, made the biggest insider sale in the last 12 months. That single transaction was for US$5.7m worth of shares at a price of US$306 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$355. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 42% of Diane Lazzaris's holding.

All up, insiders sold more shares in WESCO International than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like WESCO International better if I see some big insider buys.

Insider Ownership Of WESCO International

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. WESCO International insiders own 1.7% of the company, currently worth about US$300m 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.

So What Do The WESCO International Insider Transactions Indicate?

Unfortunately, there has been more insider selling of WESCO International stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, WESCO International makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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.

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.

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.