Investors who take an interest in Universal Stainless & Alloy Products, Inc. (NASDAQ:USAP) should definitely note that the Chief Commercial Officer & Executive VP, Christopher Zimmer, recently paid US$5.64 per share to buy US$258k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 73%, potentially signalling some real optimism.
The Last 12 Months Of Insider Transactions At Universal Stainless & Alloy Products
In fact, the recent purchase by Christopher Zimmer was the biggest purchase of Universal Stainless & Alloy Products 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$5.72. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. Christopher Zimmer was the only individual insider to buy during the last year.
Christopher Zimmer bought 62.42k shares over the last 12 months at an average price of US$6.85. 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!
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Insider Ownership of Universal Stainless & Alloy Products
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Universal Stainless & Alloy Products insiders own 3.4% of the company, worth about US$1.7m. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Universal Stainless & Alloy Products Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Universal Stainless & Alloy Products insiders are expecting 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. Case in point: We've spotted 2 warning signs for Universal Stainless & Alloy Products you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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.
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