We wouldn't blame WESCO International, Inc. (NYSE:WCC) shareholders if they were a little worried about the fact that Akash Khurana, the Executive VP and Chief Information & Digital Officer recently netted about US$1.2m selling shares at an average price of US$367. That sale reduced their total holding by 31% which is hardly insignificant, but far from the worst we've seen.

WESCO International Insider Transactions Over The Last Year

The insider, David Schulz, made the biggest insider sale in the last 12 months. That single transaction was for US$12m worth of shares at a price of US$363 each. So we know that an insider sold shares at around the present share price of US$349. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year we saw more insider selling of WESCO International shares, than buying. They sold for an average price of about US$322. It's not particularly great to see insiders were selling shares at below recent prices. Since insiders sell for many reasons, we wouldn't put too much weight on it. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of WESCO International

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that WESCO International insiders own 1.6% of the company, worth about US$267m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About WESCO International Insiders?

The insider sales have outweighed the insider buying, at WESCO International, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, WESCO International makes money, and is growing profits. 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 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.

But note: WESCO International 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.

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.