The Williams Companies, Inc. (WMB): Analyzing Insider sell/Buy ratio

With 0.24 sell/buy ratio, The Williams Companies, Inc. (NYSE:WMB) experienced more insider buying than insider selling over the last three months. Could this be a sign for outside investors to start buying as well? WMB recorded 1 sales on the open market in the last three months. They sold nearly 9,760 shares while purchases amounted to 41,000 shares that period. Looking even further back to 12 months, corporate insiders offloaded 65,266 shares when buyers snapped up 478,964 shares. The 12-month’s totals signify about a 0.14-to-1 sell/buy ratio.

Cooper Kathleen B parted with a total of 9.76 thousand shares of The Williams Companies, Inc. (WMB) at average share price of $25.6. This insider trade in the company took place on 11/29/2018. The total for the sales was set at $249.86 thousand. After this transaction, the Director account balance stood at 41.89 thousand shares. The stock lost -2.19 percent since that insider sale. On 11/06/2018, Zamarin Chad J., Senior Vice President – CSD, purchased 2.5 thousand shares at a price per share of $25.69. This added 64.23 thousand shares to the insider’s fortune and the stock saw a -2.53 percent retreat in value since the news became public. This transaction left 28.97 thousand shares in the Senior Vice President – CSD account.

On 11/02/2018, Executive Vice President & COO Dunn Micheal G. performed a purchase transaction worth $63.85 thousand. This purchase at $25.54 each has added 2.5 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -1.96 percent decrease since the transaction was reported. The insider now is left with 41.34 thousand shares remaining in the account. Creel Michael A, who performs the Director job, bought 25 thousand shares for $644.25 thousand. The acquisition occurred on 11/02/2018 was priced at $25.77 per share. The share price plunged -2.83 percent since the reporting date. Creel Michael A now left with a stake of 38.41 thousand WMB stock worth $961.71 thousand after the insider buying.

The 12-month median price target for The Williams Companies, Inc. (WMB) assigned by the analysts stands at $32, which represents a return potential of 27.8 percent when compared to the closing price of the stock of $25.04 on Friday, January 11. The lowest price target for the stock is $28 — slightly more than 11.82 percent from WMB’s current share price. The stock will probably climb 27.36 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $39-month high price target. This represents a whopping 55.75 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 62.99 on daily chart, which may remain a cause for concern. If the price breaks below $24.6 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $25.26 mark may result into a pull-back move towards $25.48 level. The stock is currently hovering around the first support level of $24.82. Below this, the next support is placed in the zone of $24.6. Till the time, the WMB stock trades above this level, bulls have nothing to fear.

Shares of The Williams Companies, Inc. (WMB) are trading at a P/E ratio of 142.71 times earnings reported for the past 12 months. The industry WMB operates in has an average P/E of 58.95. Its P/E ratio went as low as 15.41X and as high as 104.39 over the 5-year span. Further, it is sporting a 3.5 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.47. 67.7 percent is the gross profit margin for The Williams Companies, Inc. and operating margin sits at 13.9 percent. Along with this, the net profit margin is 24.1 percent.

On 11th of January, The Williams Companies, Inc. (NYSE:WMB) shares ended lower after a volatile session. The shares dropped -0.11 points or -0.44 percent at $25.04 with a light trade volume of 9.324 million shares. After opening the session at $24.92, the shares went as high as $25.26 and as low as $24.82, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $30.5 billion and now has 1.22 billion shares outstanding. The Williams Companies, Inc. (WMB) stock has gained 4.64 percent of market value in 21 trading days.

WMB stock has a trailing 3-year beta of 1.67, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.18 a share in the trailing twelve months. The stock’s value has surged 13.56 percent year to date (YTD) against a decline of -23.54 percent in 12 month’s time. The company’s shares still trade -25.63 percent away from its 1-year high of $33.67 and 22.99 percent up from 52-week low of $20.36. The average consensus rating on the company is 1.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.