We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Urstadt Biddle Properties Inc. (NYSE:UBA).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. 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 equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
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The Last 12 Months Of Insider Transactions At Urstadt Biddle Properties
Over the last year, we can see that the biggest insider sale was by the Senior VP, John Hayes, for US$87k worth of shares, at about US$22.61 per share. That means that even when the share price was slightly below the current price of US$22.64, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 6.3% of John Hayes's stake.
Over the last year, we note insiders sold 6708 shares worth US$148k. Insiders in Urstadt Biddle Properties didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at Urstadt Biddle Properties Have Sold Stock Recently
We have seen a bit of insider selling at Urstadt Biddle Properties, over the last three months. Senior VP Stephan Rapaglia sold just US$39k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.
Does Urstadt Biddle Properties Boast High Insider Ownership?
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. Urstadt Biddle Properties insiders own 18% of the company, currently worth about US$147m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Urstadt Biddle Properties Tell Us?
We did not see any insider buying in the last three months, but we did see selling. But the sales were small, so we're not concerned. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Urstadt Biddle Properties insider transactions don't fill us with confidence. Of course, the future is what matters most. So if you are interested in Urstadt Biddle Properties, 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.
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