Have Insiders Been Selling Unifi, Inc. (NYSE:UFI) Shares?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Unifi, Inc. (NYSE:UFI), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Check out our latest analysis for Unifi
The Last 12 Months Of Insider Transactions At Unifi
In the last twelve months, the biggest single sale by an insider was when Mark McNeill sold US$249k worth of shares at a price of US$30.00 per share. That means that an insider was selling shares at around the current price of US$24.29. They could have a variety of motivations for selling, but it’s still not particularly encouraging to see. We usually pause to reflect on the potential that a stock has a high valuation, if insiders have been selling at around the current price. Mark McNeill was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 5.05k shares worth US$127k. On the other hand they divested 8.33k shares, for US$249k. You can see the insider transactions over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Unifi Insiders Bought Stock Recently
Over the last quarter, Unifi insiders have spent a meaningful amount on shares. Overall, 3 insiders shelled out US$127k for shares in the company — and none sold. This makes one think the business has some good points.
Insider Ownership of Unifi
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. Unifi insiders own 7.2% of the company, currently worth about US$32m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Unifi Insider Transactions Indicate?
The recent insider purchases are heartening. However, the longer term transactions are not so encouraging. The more recent transactions are a positive, but Unifi insiders haven’t shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. In short they are likely aligned with shareholders. Of course, the future is what matters most. So if you are interested in Unifi, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
