Trade Alert: Debbie Pickle, Senior VP and Chief Human Resource Officer of Williams Companies, has sold shares

We wouldn’t blame it The Williams Companies, Inc. (NYSE:WMB) shareholders if they were a little worried that Debbie Pickle, senior VP and chief human resource officer, recently reported a net gain of about $1.5 million by selling shares at an average price of $39.61. That’s a big divestment and reduced their holding size by 39%, which is notable but not that bad.

Check out our latest analysis for Williams Companies

The last 12 months of insider transactions at Williams Companies

Of note, the recent sale by Debbie Pickle, senior VP and chief human resource officer, was not the only sale of Williams Companies stock this year. Previously, they had made an even larger sale of shares worth -$2.2 million at a price of $35.61 per share. So it’s clear that an insider wanted to take some money off the table, even below the current price of $39.64. We generally consider it a negative when insiders have sold, particularly if they did so below the current price, as it implies that they thought a lower price was appropriate. However, please note that sellers may have different reasons for selling, so we don’t know for sure what they think of the share price. It is worth noting that this sale only included 50% of Debbie Pickle’s shareholding.

Williams Companies insiders have not purchased any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the graphic, you will see all individual transactions, including share price, individual transactions and date!

If you like buying stocks that insiders are buying rather than selling, then you might like this free List of companies. (Note: insiders bought them).

Insider Ownership

Looking at the total insider shareholdings in a company can help inform your view of whether they are well aligned with common shareholders. I think it’s a good sign if insiders own a significant number of shares in the company. Williams Companies insiders own 0.5% of the company, which is currently worth about $253 million based on the latest share price. Most shareholders would be happy to see this kind of insider ownership because it suggests management’s incentives are well aligned with those of other shareholders.

What could insider transactions at Williams Companies tell us?

Insiders have recently sold shares, but they haven’t bought. And even if we look at last year, we didn’t see any purchases. On the bright side, Williams Companies is making money and growing profits. The company has a high level of insider ownership, but given its history of share sales, we’re a bit hesitant. So these insider transactions can help us form a thesis about the stock, but it’s also worth knowing the risks this company faces. At Simply Wall St we found 2 warning signs for Williams Companies that deserve your attention before buying stocks.

But note: Williams Companies may not be the best stock to buy. So take a look free List of interesting companies with high ROE and low debt.

Insiders within the meaning of this article are persons who report their transactions to the relevant supervisory authority. We currently only consider open market transactions and private dispositions of direct holdings, but not derivative transactions or indirect holdings.

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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.