WisdomTree, Inc. (NYSE:WT) shareholders (or potential shareholders) will be happy to see that the Founder, Jonathan Steinberg, recently bought a whopping US$736k worth of stock, at a price of US$10.84. While that only increased their holding size by 0.7%, it is still a big swing by our standards.

View our latest analysis for WisdomTree

WisdomTree Insider Transactions Over The Last Year

In fact, the recent purchase by Founder Jonathan Steinberg was not their only acquisition of WisdomTree shares this year. Earlier in the year, they paid US$7.20 per share in a US$2.2m purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$11.47. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Jonathan Steinberg purchased 371.65k shares over the year. The average price per share was US$7.86. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

WisdomTree 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 WisdomTree

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. WisdomTree insiders own about US$149m worth of shares (which is 9.3% 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.

What Might The Insider Transactions At WisdomTree Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about WisdomTree. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for WisdomTree you should know about.

But note: WisdomTree 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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