We'd be surprised if WEX Inc. (NYSE:WEX) shareholders haven't noticed that the Chief People Officer, Melanie Tinto, recently sold US$495k worth of stock at US$153 per share. The eyebrow raising move amounted to a reduction of 38% in their holding.

See our latest analysis for WEX

The Last 12 Months Of Insider Transactions At WEX

In the last twelve months, the biggest single sale by an insider was when the Chief Risk & Compliance Officer, Ann Drew, sold US$546k worth of shares at a price of US$218 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$155. So it is hard to draw any strong conclusion from it.

In the last year WEX 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like WEX better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does WEX Boast High 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. We usually like to see fairly high levels of insider ownership. Insiders own 0.7% of WEX shares, worth about US$42m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The WEX Insider Transactions Indicate?

Insiders haven't bought WEX stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since WEX is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - WEX has 1 warning sign we think you should be aware of.

But note: WEX 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.

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