UMH Properties, Inc.'s (NYSE:UMH) recent US$67m market cap decline means a loss of US$35k for insiders who bought this year
Insiders who bought US$247k worth of UMH Properties, Inc.'s (NYSE:UMH) stock at an average buy price of US$17.96 over the last year may be disappointed by the recent 6.8% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$212k, which is not great.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for UMH Properties
UMH Properties Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Stephen Wolgin, sold US$192k worth of shares at a price of US$24.25 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$15.42). So it may not shed much light on insider confidence at current levels. Stephen Wolgin was the only individual insider to sell shares in the last twelve months.
Over the last year, we can see that insiders have bought 13.74k shares worth US$247k. On the other hand they divested 9.60k shares, for US$233k. In the last twelve months there was more buying than selling by UMH Properties insiders. You can see the insider transactions (by companies and 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!
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).
UMH Properties Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at UMH Properties. Insiders bought US$41k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Does UMH Properties Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 6.3% of UMH Properties shares, worth about US$58m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At UMH Properties Tell Us?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think UMH Properties insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, UMH Properties has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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