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Whilst it may not be a huge deal, we thought it was good to see that the Universal Stainless & Alloy Products, Inc. (NASDAQ:USAP) Chief Commercial Officer & Executive VP, Christopher Zimmer, recently bought US$60k worth of stock, for US$12.00 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 17%.
The Last 12 Months Of Insider Transactions At Universal Stainless & Alloy Products
Notably, that recent purchase by Christopher Zimmer is the biggest insider purchase of Universal Stainless & Alloy Products shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$11.51). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Christopher Zimmer.
Christopher Zimmer bought a total of 7.60k shares over the year at an average price of US$12.17. You can see the insider transactions (by individuals) over the last year depicted in the chart 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 Stainless & Alloy Products Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Universal Stainless & Alloy Products insiders own 2.9% of the company, worth about US$3.0m. We consider this fairly low insider ownership.
So What Do The Universal Stainless & Alloy Products Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Universal Stainless & Alloy Products stock. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Universal Stainless & Alloy Products 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.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned.
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