Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Universal Insurance Holdings, Inc. (NYSE:UVE), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Universal Insurance Holdings Insider Transactions Over The Last Year
The CEO & Director Stephen Donaghy made the biggest insider purchase in the last 12 months. That single transaction was for US$119k worth of shares at a price of US$11.91 each. We do like to see buying, but this purchase was made at well below the current price of US$13.80. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Universal Insurance Holdings insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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.
Many investors like to check how much of a company is owned by 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. It appears that Universal Insurance Holdings insiders own 10.0% of the company, worth about US$43m. 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 Universal Insurance Holdings Insiders?
It doesn't really mean much that no insider has traded Universal Insurance Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Universal Insurance Holdings and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Universal Insurance Holdings. While conducting our analysis, we found that Universal Insurance Holdings has 1 warning sign and it would be unwise to ignore it.
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. 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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