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Investors who take an interest in Unifi, Inc. (NYSE:UFI) should definitely note that the Independent Director, Kenneth Langone, recently paid US$11.99 per share to buy US$102k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Unifi
Notably, that recent purchase by Independent Director Kenneth Langone was not the only time they bought Unifi shares this year. Earlier in the year, they paid US$23.69 per share in a US$564k purchase. That means that an insider was happy to buy shares at above the current price of US$12.90. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 281.37k shares worth US$5.3m. But insiders sold 20.00k shares worth US$509k. Overall, Unifi insiders were net buyers during the last year. They paid about US$18.84 on average. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Unifi
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Unifi insiders own about US$23m worth of shares. That equates to 9.7% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Unifi Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Unifi we think they are probably pretty confident of a bright future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Unifi.
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.
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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