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Don't Ignore The Insider Selling In UFP Technologies

Simply Wall St ·  Nov 15 18:49

Some UFP Technologies, Inc. (NASDAQ:UFPT) shareholders may be a little concerned to see that the CEO & Chairman, R. Bailly, recently sold a substantial US$8.8m worth of stock at a price of US$348 per share. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.

UFP Technologies Insider Transactions Over The Last Year

In fact, the recent sale by CEO & Chairman R. Bailly was not their only sale of UFP Technologies shares this year. Earlier in the year, they fetched US$325 per share in a -US$14m sale. So what is clear is that an insider saw fit to sell at around the current price of US$309. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Insiders in UFP Technologies didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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NasdaqCM:UFPT Insider Trading Volume November 15th 2024

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of UFP Technologies

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that UFP Technologies insiders own 4.0% of the company, worth about US$96m. 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?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, UFP Technologies makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! While it's good to be aware of 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. Every company has risks, and we've spotted 2 warning signs for UFP Technologies you should know about.

Of course UFP Technologies 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 of direct interests only, but not derivative transactions or indirect interests.

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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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