Yahoo Finance This United Parcel Service Insider Reduced Their Stake By 100%
From what we can see, insiders were net sellers in United Parcel Service, Inc.'s (NYSE:UPS ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for United Parcel Service
United Parcel Service Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Executive VP & President of U.S. and UPS Airline, Nando Cesarone, sold US$3.9m worth of shares at a price of US$172 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$130). So it is hard to draw any strong conclusion from it. Nando Cesarone was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 6.40k shares worth US$842k. On the other hand they divested 22.83k shares, for US$3.9m. 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!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insiders At United Parcel Service Have Bought Stock Recently
It's good to see that United Parcel Service insiders have made notable investments in the company's shares. Independent Non-Executive Chairman William Johnson spent US$643k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.
Does United Parcel Service Boast High Insider Ownership?
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. United Parcel Service insiders own about US$80m worth of shares. That equates to 0.07% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The United Parcel Service Insider Transactions Indicate?
The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by United Parcel Service insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing United Parcel Service. For example, United Parcel Service has 3 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
But note: United Parcel Service 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
