Insiders who bought US$230.7k worth of Universal Electronics Inc.'s (NASDAQ:UEIC) stock at an average buy price of US$6.82 over the last year may be disappointed by the recent 11% decrease in the stock. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$130.2k.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Universal Electronics Insider Transactions Over The Last Year
The Independent Chairman of the Board Eric Singer made the biggest insider purchase in the last 12 months. That single transaction was for US$63k worth of shares at a price of US$7.09 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.85). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid US$231k for 33.83k shares. On the other hand they divested 6.34k shares, for US$28k. In the last twelve months there was more buying than selling by Universal Electronics insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Universal Electronics
Universal Electronics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Universal Electronics Have Sold Stock Recently
Over the last three months, we've seen a bit of insider selling at Universal Electronics. Senior Vice President of Corporate Planning & Strategy Ramzi Ammari divested only US$20k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.
Does Universal Electronics Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 6.9% of Universal Electronics shares, worth about US$3.6m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Universal Electronics Tell Us?
While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we're not concerned. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Universal Electronics stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Universal Electronics. To that end, you should learn about the 2 warning signs we've spotted with Universal Electronics (including 1 which is a bit concerning).
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.