Some WisdomTree, Inc. (NYSE:WT) shareholders may be a little concerned to see that the Senior Advisor to the CEO & Chief Administrative Officer, Peter Ziemba, recently sold a substantial US$1.9m worth of stock at a price of US$19.31 per share. That sale reduced their total holding by 10% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At WisdomTree

Notably, that recent sale by Peter Ziemba is the biggest insider sale of WisdomTree shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$19.08. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

All up, insiders sold more shares in WisdomTree than they bought, over the last year. They sold for an average price of about US$18.70. We don't gain confidence from insider selling below the recent share price. Since insiders sell for many reasons, we wouldn't put too much weight on it. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does WisdomTree Boast High Insider Ownership?

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. I reckon it's a good sign if insiders own a significant number of shares in the company. WisdomTree insiders own about US$269m worth of shares (which is 9.4% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About WisdomTree Insiders?

The insider sales have outweighed the insider buying, at WisdomTree, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that WisdomTree is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. To help with this, we've discovered 3 warning signs (1 can't be ignored!) that you ought to be aware of before buying any shares in WisdomTree.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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.