Entertainment

This Insider Has Just Sold Shares In World Wrestling Entertainment, Inc. (NYSE:WWE)

Anyone interested in World Wrestling Entertainment, Inc. (NYSE:WWE) should probably be aware that the Executive Vice President of Operations, Bradley Blum, recently divested US$162k worth of shares in the company, at an average price of US$57.83 each. That sale was 11% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for World Wrestling Entertainment

The Last 12 Months Of Insider Transactions At World Wrestling Entertainment

The Executive VP of Global Talent Strategy & Development and Director, Paul Levesque, made the biggest insider sale in the last 12 months. That single transaction was for US$2.1m worth of shares at a price of US$55.60 each. So it’s clear an insider wanted to take some cash off the table, even slightly below the current price of US$55.91. 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. However, while insider selling is sometimes discouraging, it’s only a weak signal. We note that the biggest single sale was only 43% of Paul Levesque’s holding.

In the last year World Wrestling Entertainment insiders didn’t buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:WWE Insider Trading Volume November 14th 2021

I will like World Wrestling Entertainment better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of World Wrestling Entertainment

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. World Wrestling Entertainment insiders own about US$1.8b worth of shares (which is 42% 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.

What Might The Insider Transactions At World Wrestling Entertainment Tell Us?

Insiders sold stock recently, but they haven’t been buying. 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. In terms of investment risks, we’ve identified 2 warning signs with World Wrestling Entertainment and understanding these should be part of your investment process.

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, but not derivative transactions.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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