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How Much Are UDG Healthcare plc (LON:UDG) Insiders Taking Off The Table?

David Owens

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It is not uncommon to see companies perform well in the years after insiders buy shares. 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 shareholders might well want to know whether insiders have been buying or selling shares in UDG Healthcare plc (LON:UDG).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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 UDG Healthcare

The Last 12 Months Of Insider Transactions At UDG Healthcare

Non-Executive Director Chris Corbin made the biggest insider sale in the last 12 months. That single transaction was for UK£6.8m worth of shares at a price of UK£9.03 each. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of UK£5.82. So it is hard to draw any strong conclusion from it. Chris Corbin was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid UK£468k for 73.25k shares. But insiders sold 1.48m shares worth UK£13m. Chris Corbin sold a total of 1.48m shares over the year at an average price of US$8.86. You can see the insider transactions (by 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!

LSE:UDG Insider Trading February 19th 19

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.

UDG Healthcare Insiders Bought Stock Recently

Over the last three months, we’ve seen significant insider buying at UDG Healthcare. In total, insiders bought US$118k worth of shares in that time, and we didn’t record any sales whatsoever. That shows some optimism about the company’s future.

Insider Ownership of UDG Healthcare

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 0.5% of UDG Healthcare shares, worth about UK£6.6m, according to our data. Whilst better than nothing, we’re not overly impressed by these holdings.

So What Do The UDG Healthcare Insider Transactions Indicate?

The recent insider purchases are heartening. However, the longer term transactions are not so encouraging. The transactions over the last year don’t give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: UDG Healthcare 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. On rare occasion, data errors may occur. Thank you for reading.