Over the last year, a good number of insiders have significantly increased their holdings in The Walt Disney Company (NYSE:DIS). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Walt Disney

The Last 12 Months Of Insider Transactions At Walt Disney

Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board James Gorman for US$2.1m worth of shares, at about US$106 per share. That means that an insider was happy to buy shares at around the current price of US$110. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Walt Disney insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 31.76k shares worth US$3.1m. On the other hand they divested 4.40k shares, for US$466k. Overall, Walt Disney insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Walt Disney is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Walt Disney

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Walt Disney insiders own 0.02% of the company, worth about US$46m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Walt Disney Insiders?

It doesn't really mean much that no insider has traded Walt Disney shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Walt Disney and we see no evidence to suggest they are worried about the future. 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. For example - Walt Disney has 1 warning sign we think you should be aware of.

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 of direct interests only, but not derivative transactions or indirect interests.

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