We'd be surprised if United Rentals, Inc. (NYSE:URI) shareholders haven't noticed that the Independent Director, Jason Papastavrou, recently sold US$456k worth of stock at US$150 per share. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.
The Last 12 Months Of Insider Transactions At United Rentals
Over the last year, we can see that the biggest insider sale was by the Non-Executive Chairman, Michael Kneeland, for US$5.2m worth of shares, at about US$151 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$155. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 20% of Michael Kneeland's holding.
In the last twelve months insiders purchased 7628 shares for US$891k. But insiders sold 93208 shares worth US$13m. All up, insiders sold more shares in United Rentals than they bought, over the last year. 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!
I will like United Rentals better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. United Rentals insiders own about US$53m worth of shares. That equates to 0.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At United Rentals Tell Us?
The stark truth for United Rentals is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! Of course, the future is what matters most. So if you are interested in United Rentals, you should check out this free report on analyst forecasts for the company.
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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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. Thank you for reading.