We'd be surprised if UFP Technologies, Inc. (NASDAQ:UFPT) shareholders haven't noticed that the Chairman of the Board of Directors, R. Bailly, recently sold US$228k worth of stock at US$175 per share. However, the silver lining is that the sale only reduced their total holding by 0.4%, so we're hesitant to read anything much into it, on its own.
Check out our latest analysis for UFP Technologies
The Last 12 Months Of Insider Transactions At UFP Technologies
Over the last year, we can see that the biggest insider sale was by the Independent Director, Thomas Oberdorf, for US$3.8m worth of shares, at about US$143 per share. That means that an insider was selling shares at slightly below the current price (US$173). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 91% of Thomas Oberdorf's stake.
Over the last year we saw more insider selling of UFP Technologies shares, than buying. 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!
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Insider Ownership Of UFP Technologies
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. Insiders own 7.3% of UFP Technologies shares, worth about US$97m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About UFP Technologies Insiders?
The insider sales have outweighed the insider buying, at UFP Technologies, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that UFP Technologies is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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. While conducting our analysis, we found that UFP Technologies has 1 warning sign and it would be unwise to ignore it.
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 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.
