Anyone interested in World Acceptance Corporation (NASDAQ:WRLD) should probably be aware that the Senior VP, Luke Umstetter, recently divested US$182k worth of shares in the company, at an average price of US$182 each. However, the silver lining is that the sale only reduced their total holding by 3.4%, so we're hesitant to read anything much into it, on its own.

The Last 12 Months Of Insider Transactions At World Acceptance

Over the last year, we can see that the biggest insider sale was by the insider, Ravin Prashad, for US$1.5m worth of shares, at about US$168 per share. That means that an insider was selling shares at slightly below the current price (US$173). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 9.8% of Ravin Prashad's stake.

In the last year World Acceptance insiders didn't buy any company stock. 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!

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Does World Acceptance 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. We usually like to see fairly high levels of insider ownership. World Acceptance insiders own 19% of the company, currently worth about US$153m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At World Acceptance Tell Us?

Insiders sold World Acceptance shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. 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.

Of course World Acceptance may not be the best stock to buy. So you may wish to see this free collection of high quality 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.