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CEO Sandeep Mathrani Just Bought WeWork (WE) Stock. Here’s Why.


Editor’s note: This article was updated on April 6 to remove inaccurate discussion of Adam Neumann selling WE stock during Q4. 

Shares of WeWork (NYSE:WE) are in the green following an insider transaction by CEO Sandeep Mathrani. The embattled workspace rental services company has had its fair share of controversy since its failed initial public offering (IPO) in 2019. However, that hasn’t stopped Mathrani from buying up shares of WE stock.

Image of WeWork logo on the side of a glass building.
Source: photobyphm / Shutterstock.com

CEO Sandeep Mathrani Buys WE Stock

On March 22, Mathrani purchased 30,000 shares of WeWork at an average price of $6.55. In total, the transaction amounted to roughly $195,000. After the purchase, Mathrani now owns 1.73 million shares of WE stock. Mathrani’s last purchase of his company occurred last November. During that time, the CEO purchased 29,600 shares at an average price of $8.46. In total, the transaction amounted to around $250,000.

Mathrani’s purchase came 11 days after WeWork reported Q4 earnings. The company posted revenue of $718 million, up 8.6% year-over-year (YOY). Furthermore, the company’s occupancy rate increased by 6% quarter-over-quarter to 66%.

Looking forward, WeWork expects to generate between $3.8 billion and $4 billion of revenue this year. As Credit Suisse analyst Andy Grobler explained, “WeWork’s outlook for 2022 includes a 28% increase in physical memberships, a 34% increase in revenues, and an uptick in occupancy to 75% to 80% from 63% in fiscal 2021.”

So, how do other insiders of WeWork feel about their company? In the past 12 months, insiders have purchased 60.6 million shares, while selling 17.9 million shares. In total, insiders have amounted to a net activity of 42.7 million shares purchased in the past year. Based on net activity, it certainly seems like insiders are bullish.

Who Else Is Betting Big on WeWork?

Tracking institutional ownership allows retail investors to take a look inside the minds of some of the world’s savviest investment managers. According to WhaleWisdom, which tracks all 13F filers, 93 funds hold WE stock as of Q4, an increase of 41% from the prior quarter. Furthermore, 62 funds initiated a new position, while 31 funds completely liquidated their position.

With that in mind, let’s take a look at the top five shareholders of WeWork:

  1. SoftBank Global Advisors (OTCMKTS:SFTBY): 370.2 million shares
  2. SoftBank Investment Advisors: 81 million shares
  3. Adam Neumann: 68.2 million shares
  4. FMR: 53 million shares
  5. Insight Holdings Group: 12.5 million shares

During Q4, both Softbank funds and Insight increased their holdings in WE stock. Oddly enough, FMR reported that it had sold 1 share during the quarter.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Article printed from InvestorPlace Media, https://investorplace.com/2022/04/ceo-sandeep-mathrani-just-bought-wework-we-stock-heres-why/.

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