Insiders saw their US$2.6m investment bump up to US$3.0m after UGI Corporation (NYSE:UGI) soared 3.0% last week
Last week, UGI Corporation (NYSE:UGI) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 3.0% last week, resulting in a US$267m increase in the company's market worth. As a result, their original purchase of US$2.6m worth of stock is now worth US$3.0m.
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.
Check out our latest analysis for UGI
UGI Insider Transactions Over The Last Year
The Independent Non-Executive Chairman Frank Hermance made the biggest insider purchase in the last 12 months. That single transaction was for US$2.5m worth of shares at a price of US$38.15 each. Even though the purchase was made at a significantly lower price than the recent price (US$43.19), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 68.90k shares worth US$2.6m. But they sold 0.50 shares for US$19.1. In total, UGI insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that UGI insiders own 0.6% of the company, worth about US$56m. 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 Does This Data Suggest About UGI Insiders?
It doesn't really mean much that no insider has traded UGI shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in UGI and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that UGI has 2 warning signs and it would be unwise to ignore them.
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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