We’d be surprised if Ultra Clean Holdings, Inc. (NASDAQ:UCTT) shareholders haven’t noticed that the Independent Director, Thomas Edman, recently sold US$103k worth of stock at US$20.52 per share. That sale was 20% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At Ultra Clean Holdings
The Non-Executive Director, Leonid Mezhvinsky, made the biggest insider sale in the last 12 months. That single transaction was for US$497k worth of shares at a price of US$22.10 each. So what is clear is that an insider saw fit to sell at around the current price of US$20.14. While insider selling is a negative, to us, it is more negative if the shares are sold 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).
In the last year Ultra Clean Holdings insiders didn’t buy any company stock. You can see the insider transactions (by 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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Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Ultra Clean Holdings insiders own 2.9% of the company, worth about US$23m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Do The Ultra Clean Holdings Insider Transactions Indicate?
Insiders sold Ultra Clean Holdings shares recently, but they didn’t buy any. Looking to the last twelve months, our data doesn’t show any insider buying. While insiders do own shares, they don’t own a heap, and they have been selling. We’d think twice before buying! So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. For instance, we’ve identified 2 warning signs for Ultra Clean Holdings (1 is concerning) you should be aware of.
But note: Ultra Clean Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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This article by Simply Wall St is general in nature. 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. Thank you for reading.