There is usually nothing wrong with one insider buying shares. But when a significant number of insiders buy stocks, as happened in 2019, universal electronics company (NASDAQ:UEIC) is great news for shareholders.
While we never say investors should base their decisions solely on the actions of a company's directors, we believe it would be foolish to ignore insider trading entirely.
Check out our latest analysis for Universal Electronics.
Insider transactions in Universal Electronics over the last 12 months
We can see that the biggest insider purchase in the last year was by Chairman & CEO Paul Arling for US$99,000 worth of shares (approximately US$9.97 per share). So it's clear that insiders wanted to buy at a higher price than the current share price ($8.81). It's entirely possible that they regret their purchase, but it's more likely that they're bullish on the company. In our view, the price insiders pay for shares is very important. Generally, we draw attention when insiders buy shares at a higher price than the current price. This is because it suggests that they believed the stock was worth buying, even at a high price.
Universal Electronics insiders bought shares last year, but didn't sell them. The chart below depicts insider transactions (by companies and individuals) over the past year. Click on the chart to see all individual trades, including stock price, individual, and date.
There are always plenty of stocks that insiders are buying. Check out each stock one by one or take a look at this if that suits your style. free List of companies. (Hint: Insiders are buying them).
Does Universal Electronics have high insider ownership?
I like to see how many shares a company's insiders own in a company, as it can tell us how well aligned a company is with its insiders. We think it's a good sign if insiders own a significant number of shares in the company. Our data shows that Universal Electronics insiders own around US$6.3m worth of shares (representing his 5.5% of the company). Overall, this level of ownership isn't all that impressive, but it's certainly better than nothing.
So what does this data suggest about Universal Electronics insiders?
There were no insider transactions in the last three months, which doesn't mean much. On a brighter note, last year's trading was encouraging. We don't have any concerns about insider trading, but we would feel better if they held more shares in Universal Electronics. So while it's useful to know what insiders are doing in terms of buying and selling, it's also useful to know the risks facing a particular company. In terms of investment risk, We've identified 1 warning sign You should consider partnering with Universal Electronics and understand this as part of your investment process.
of course Universal Electronics may not be the best stock to buy.So you might want to see this free There are many high-quality companies here.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. The Company currently only accounts for open market transactions and private dispositions of direct profits, and does not account for derivative transactions or indirect profits.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.