Anyone interested in The Wendy's Company (NASDAQ:WEN) should probably be aware that the Independent Director, Michelle Mathews-Spradlin, recently divested US$496k worth of shares in the company, at an average price of US$20.28 each. That sale was 28% of their holding, so it does make us raise an eyebrow.

Wendy's Insider Transactions Over The Last Year

Notably, that recent sale by Michelle Mathews-Spradlin is the biggest insider sale of Wendy's shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$18.79. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Wendy's insiders didn't buy any shares over the last year. 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!

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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. Wendy's insiders own about US$351m worth of shares (which is 8.8% of the company). 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 Wendy's Insiders?

An insider sold Wendy's shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Wendy's is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. 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've found that Wendy's has 3 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

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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.