We wouldn't blame Unifi, Inc. (NYSE:UFI) shareholders if they were a little worried about the fact that Archibald Cox, the Lead Independent Director recently netted about US$509k selling shares at an average price of US$25.45. That's a big dump, and it decreased their holding size by 22%, which is notable but not too bad.
Unifi Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Kenneth Langone for US$850k worth of shares, at about US$21.59 per share. That implies that an insider found the current price of US$25.27 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Unifi share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 120000 shares worth US$2.4m. On the other hand they divested 20000 shares, for US$509k. In the last twelve months there was more buying than selling by Unifi insiders. The chart below shows insider transactions (by 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).
Insider Ownership of Unifi
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 7.9% of Unifi shares, worth about US$37m. 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 Unifi Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Unifi shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Unifi, you should check out this free report on analyst forecasts for the company.
But note: Unifi 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.
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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