Have Insiders Sold Universal Store Holdings Shares Recently?

We wouldn't blame Universal Store Holdings Limited (ASX:UNI) shareholders if they were a little worried about the fact that Alice Barbery, the MD, CEO & Executive Director recently netted about AU$2.7m selling shares at an average price of AU$7.80. That sale reduced their total holding by 16% which is hardly insignificant, but far from the worst we've seen.

We've discovered 3 warning signs about Universal Store Holdings. View them for free.

The Last 12 Months Of Insider Transactions At Universal Store Holdings

In fact, the recent sale by Alice Barbery was the biggest sale of Universal Store Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of AU$7.90, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 16% of Alice Barbery's holding.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 Store Holdings

I will like Universal Store Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Universal Store Holdings 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. We usually like to see fairly high levels of insider ownership. Insiders own 14% of Universal Store Holdings shares, worth about AU$87m. 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 Do The Universal Store Holdings Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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 3 warning signs for Universal Store Holdings you should know about.

But note: Universal Store 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 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.