Potential Unifi, Inc. (NYSE:UFI) shareholders may wish to note that the Independent Director, Kenneth Langone, recently bought US$262k worth of stock, paying US$21.82 for each share. Although the purchase only increased their holding by 1.0%, it is still a solid purchase in our view.
Unifi Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Director Kenneth Langone was not their only acquisition of Unifi shares this year. Earlier in the year, they paid US$21.59 per share in a US$850k purchase. That means that an insider was happy to buy shares at above the current price of US$21.52. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 137.00k shares for US$2.8m. But they sold 20000 for US$509k. In the last twelve months there was more buying than selling by Unifi insiders. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Unifi is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 7.9% of Unifi shares, worth about US$32m. 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 Unifi Insider Transactions Indicate?
The stark truth for Unifi is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. It's good to see insiders are shareholders. So the recent selling doesn't worry us too much. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Unifi.
But note: Unifi 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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