United Insurance Holdings Corp. (NASDAQ:UIHC) insiders placed bullish bets worth US$1.6m in the last 12 months
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of United Insurance Holdings Corp. (NASDAQ:UIHC), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for United Insurance Holdings
The Last 12 Months Of Insider Transactions At United Insurance Holdings
Notably, that recent purchase by Chief Underwriting Officer Brooke Shirazi was not the only time they bought United Insurance Holdings shares this year. They previously made an even bigger purchase of US$220k worth of shares at a price of US$3.17 per share. We do like to see buying, but this purchase was made at well below the current price of US$3.92. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
United Insurance Holdings insiders may have bought shares in the last year, but they didn't sell any. They paid about US$4.36 on average. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
United Insurance Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
United Insurance Holdings Insiders Bought Stock Recently
It's good to see that United Insurance Holdings insiders have made notable investments in the company's shares. Overall, six insiders shelled out US$701k for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership of United Insurance Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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's great to see that United Insurance Holdings insiders own 52% of the company, worth about US$88m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At United Insurance Holdings Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about United Insurance Holdings. Looks promising! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 3 warning signs for United Insurance Holdings (1 is significant!) that we believe deserve your full attention.
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.
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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