United Parcel Service, Inc. (NYSE:UPS) shareholders (or potential shareholders) will be happy to see that the CEO & Director, Carol Tomé, recently bought a whopping US$1.0m worth of stock, at a price of US$99.33. That purchase boosted their holding by 344%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
United Parcel Service Insider Transactions Over The Last Year
In fact, the recent purchase by Carol Tomé was the biggest purchase of United Parcel Service shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is US$103. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for United Parcel Service share holders is that an insider was buying at near the current price. Carol Tomé was the only individual insider to buy shares in the last twelve months.
The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
United Parcel Service is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of United Parcel Service
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that United Parcel Service insiders own 0.09% of the company, worth about US$81m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The United Parcel Service Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest United Parcel Service insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing United Parcel Service. At Simply Wall St, we found 1 warning sign for United Parcel Service that deserve your attention before buying any shares.
Of course United Parcel Service may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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, but not derivative transactions.
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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.