Whilst it may not be a huge deal, we thought it was good to see that the U.S. Xpress Enterprises, Inc. (NYSE:USX) Lead Independent Director, John Rickel, recently bought US$69k worth of stock, for US$2.77 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 23%.
U.S. Xpress Enterprises Insider Transactions Over The Last Year
The Co-Founder & Executive Chairman Max Fuller made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$4.19 each. That means that even when the share price was higher than US$3.11 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 368.12k shares worth US$1.5m. But insiders sold 16.92k shares worth US$143k. In the last twelve months there was more buying than selling by U.S. Xpress Enterprises insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. U.S. Xpress Enterprises insiders own about US$73m worth of shares (which is 46% of the company). 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 Does This Data Suggest About U.S. Xpress Enterprises Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about U.S. Xpress Enterprises. Nice! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for U.S. Xpress Enterprises you should be aware of, and 1 of these is a bit unpleasant.
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.