Even though United Bankshares, Inc.'s (NASDAQ:UBSI) stock is down 4.2% this week, insiders who bought lately made a US$12k profit
United Bankshares, Inc. (NASDAQ:UBSI) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 4.2% decline in the stock price. Even after accounting for the recent loss, the US$263k worth of stock purchased by them is now worth US$275k or in other words, their investment continues to give good returns.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for United Bankshares
The Last 12 Months Of Insider Transactions At United Bankshares
The Executive Chairman of the Board Richard Adams made the biggest insider purchase in the last 12 months. That single transaction was for US$261k worth of shares at a price of US$33.60 each. So it's clear an insider wanted to buy, at around the current price, which is US$35.20. 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. The good news for United Bankshares share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Richard Adams.
Richard Adams purchased 7.82k shares over the year. The average price per share was US$33.63. The chart below shows insider transactions (by companies and 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. United Bankshares insiders own 2.2% of the company, currently worth about US$103m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At United Bankshares Tell Us?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like United Bankshares insiders think the business has merit. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for United Bankshares.
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.
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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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