Insiders at UiPath Inc. (NYSE:PATH) sold US$19m worth of stock at an average price of US$42.63 a share over the past year, making the most of their investment. The company's market worth decreased by US$703m over the past week after the stock price dropped 6.1%, although insiders were able to minimize their losses

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 UiPath

UiPath Insider Transactions Over The Last Year

The Executive Vice President of Products & Engineering, Ted Kummert, made the biggest insider sale in the last 12 months. That single transaction was for US$6.8m worth of shares at a price of US$43.74 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$20.00. So it may not tell us anything about how insiders feel about the current share price.

UiPath insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

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. A high insider ownership often makes company leadership more mindful of shareholder interests. UiPath insiders own about US$2.3b worth of shares (which is 21% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About UiPath Insiders?

It doesn't really mean much that no insider has traded UiPath shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the UiPath insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for UiPath you should be aware of, and 1 of these can't be ignored.

Of course UiPath may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.