I don't claim to "know" which direction this stock will go. However, I do know what profiles that I like and have made money with. No insider buying is a show stopper for me. There are way too many other stocks to buy then to rationalize why I should own this stock. I don't have any interest in this company/stock so I don't care one way or the other.
If, for some reason, you lose money on this stock...just remember this thread and consider using Insider Buying as one of your many filters. It may help you.
With that said, I wish you the very best of luck with UBNT! :-)
OK...I get your point that Insiders hold a lot of shares. Got it! Let me state my point just a little differently and then I think you will get my point.
From a logical stand point, doesn't it make sense to invest your money along with the corporate Insiders than against them? If you see a company with where several Insiders are buying and very few (if none) are selling, isn't it logical to assume that they are confident that the stock will go up and it's probably safe for you to buy along with them? Conversely, if you see a company with where several Insiders are selling and very few (if none) are buying, are you suggesting that it is logical to buy under these conditions too??? If your answer is to buy under both scenarios...then I and/or no one else can help you. Over time you will become part of a common statistic...someone who has lost money in the market.
I believe that one of the most important rules in investing is, don't listen to what management says...watch what they do with their money...then listen to their story. There are over 3,000 different companies traded on the NASDAQ. Certainly there must be a company with a better Insider Buy/Sell profile than UBNT!
Finally, I have worked with many Insiders. After they sell a ton of stock, if they see a really good buying opportunity, they take a part of the proceeds from the sale and buy back some stock. Everyone in business likes to make more money if they can. It's the human greed factor drives these behaviors. The fact that there is no Insider buying on UBNT is a significant problem for me.
Thanks for your response. I'm not too sure what it means but you accidently reinforced my point. You mentioned that no one sold any stock since UBNT was at $50. Well it was at $50 on Sept 12, 2014. That was 3 months ago!!! Your point based on a 3 month analysis does not inspire confidence! In fact, as you said, if this is the most profitable company per employee, why has there been no Insider Buying??? Surely after dropping some $22 per share from $50 some Insider would say, "Hey, our company is doing great and the stock is now trading so low that I'll buy some stock and it will go up from here!" But no...Insiders aren't buying here which probably means that no one should own it here either.
I've been investing for a pretty long time and every stock that I've seen with this level of Insider selling has not ended well. I learned my lesson 20 years ago with Calgene. I lost a lot of money with this stock that I haven't forgotten. But I learned a lesson: No Insider buying is always a serious warning sign!!!
FYI: Company stock buy-back programs essentially inflate stock value. If done for the right reasons, all shareholders benefit. However, in this case, it seems that UBNT is trying to inflate the stock price to benefit the Insiders who are selling it.
Sorry I can't be more positive for the Longs. Good Luck.
I happened to have checked the Insider Buying and Selling activity on UBNT. The results totally surprised me! Since Oct 19, 2011, the earliest date, Insiders have sold 93.9 Million shares for $1.7 Billion. The ONLY Insider that bought shares was Steven Altman, who bought 30K shares for $1.1 Million during November and December 2013. Given these numbers, the shares Sold to Buy ratio is 3,130!!! (93.9 Mil / 30K) This is one of the worst that I've ever seen!
Some may believe that the fundamental story on this stock is good. I do not! The total lack of Insider Buying and the super strong amount of Insider Selling is the ultimate indicator to me that a good fundamental story may be bogus and any Long position is risky.
Given the down trending chart, some of the problems that the company is having with their product and the lack of Insider Buying, represents a strong Sell or Short to me. If I've got something wrong here, please let me know.