Yahoo Finance The Independent Director of Wayfair Inc. (NYSE:W), Michael Choe, Just Bought 28% More Shares
Those following along with Wayfair Inc. (NYSE:W) will no doubt be intrigued by the recent purchase of shares by Michael Choe, Independent Director of the company, who spent a stonking US$1.7m on stock at an average price of US$49.86. Not only is that a big swing, but it increased their holding size by 28%, which is definitely great to see.
See our latest analysis for Wayfair
Wayfair Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Director Michael Choe was not the only time they bought Wayfair shares this year. Earlier in the year, they paid US$259 per share in a US$2.6m purchase. That means that an insider was happy to buy shares at above the current price of US$56.31. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Michael Choe was the only individual insider to buy during the last year.
Michael Choe bought a total of 55.00k shares over the year at an average price of US$101. 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!
Wayfair is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Wayfair
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Wayfair insiders own about US$1.7b worth of shares (which is 29% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Wayfair Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Wayfair. Looks promising! While we like knowing 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. For instance, we've identified 3 warning signs for Wayfair (1 is a bit unpleasant) you should be aware of.
Of course Wayfair 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, but not derivative transactions.
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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.
