Chairman Alan Miller Just Bought 1.4% More Shares In Universal Health Realty Income Trust (NYSE:UHT)
Even if it's not a huge purchase, we think it was good to see that Alan Miller, the Chairman of Universal Health Realty Income Trust (NYSE:UHT) recently shelled out US$98k to buy stock, at US$48.90 per share. Although the purchase is not a big one, increasing their shareholding by only 1.4%, it can be interpreted as a good sign.
See our latest analysis for Universal Health Realty Income Trust
The Last 12 Months Of Insider Transactions At Universal Health Realty Income Trust
In the last twelve months, the biggest single purchase by an insider was when Lead Independent Trustee Robert McCadden bought US$120k worth of shares at a price of US$47.88 per share. That implies that an insider found the current price of US$50.87 per share to be enticing. 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 Universal Health Realty Income Trust share holders is that insiders were buying at near the current price.
While Universal Health Realty Income Trust insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Universal Health Realty Income Trust Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 Universal Health Realty Income Trust insiders own 1.9% of the company, worth about US$13m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Universal Health Realty Income Trust Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Universal Health Realty Income Trust we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Universal Health Realty Income Trust is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...
But note: Universal Health Realty Income Trust 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, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
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