Anyone interested in UFP Technologies, Inc. (NASDAQ:UFPT) should probably be aware that the Independent Director, Thomas Oberdorf, recently divested US$437k worth of shares in the company, at an average price of US$43.73 each. That sale was 17% of their holding, so it does make us raise an eyebrow.
UFP Technologies Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Chairman, R. Bailly, for US$1.9m worth of shares, at about US$45.14 per share. So what is clear is that an insider saw fit to sell at around the current price of US$43.30. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. 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).
UFP Technologies insiders didn’t buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does UFP Technologies Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 9.2% of UFP Technologies shares, worth about US$30m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At UFP Technologies Tell Us?
An insider sold stock recently, but they haven’t been buying. And there weren’t any purchases to give us comfort, over the last year. But it is good to see that UFP Technologies is growing earnings. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. 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. You’d be interested to know, that we found 1 warning sign for UFP Technologies and we suggest you have a look.
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, 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.
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