Whilst it may not be a huge deal, we thought it was good to see that the UGE International Ltd. (CVE:UGE) Independent Director, Peter van Egmond Rossbach, recently bought CA$96k worth of stock, for CA$1.80 per share. That purchase might not be huge but it did increase their holding by 12%.
The Last 12 Months Of Insider Transactions At UGE International
Notably, that recent purchase by Peter van Egmond Rossbach is the biggest insider purchase of UGE International shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is CA$1.80. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the UGE International insiders decided to buy shares at close to current prices.
While UGE International insiders bought shares during the last year, they didn't sell. Their average price was about CA$0.83. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and 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!
UGE International is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of UGE International
For a common shareholder, it is worth checking how many shares are held by company 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. UGE International insiders own 41% of the company, currently worth about CA$21m 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.
So What Does This Data Suggest About UGE International Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about UGE International. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, UGE International has 5 warning signs (and 1 which is significant) we think you should know about.
But note: UGE International 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.
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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