Stock Analysis

Trade Alert: The CEO & Executive Director Of United Utilities Group PLC (LON:UU.), Steven Mogford, Has Sold Some Shares Recently

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Anyone interested in United Utilities Group PLC (LON:UU.) should probably be aware that the CEO & Executive Director, Steven Mogford, recently divested UK£369k worth of shares in the company, at an average price of UK£10.54 each. The eyebrow raising move amounted to a reduction of 43% in their holding.

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United Utilities Group Insider Transactions Over The Last Year

Notably, that recent sale by CEO & Executive Director Steven Mogford was not the only time they sold United Utilities Group shares this year. They previously made an even bigger sale of -UK£1.0m worth of shares at a price of UK£10.46 per share. So we know that an insider sold shares at around the present share price of UK£10.44. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Happily, we note that in the last year insiders paid UK£120k for 13.58k shares. But insiders sold 254.43k shares worth UK£2.5m. All up, insiders sold more shares in United Utilities Group than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

LSE:UU. Insider Trading Volume March 19th 2023

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Does United Utilities Group 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. Based on our data, United Utilities Group insiders have about 0.05% of the stock, worth approximately UK£3.3m. I generally like to see higher levels of ownership.

So What Do The United Utilities Group Insider Transactions Indicate?

Insiders haven't bought United Utilities Group stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But since United Utilities Group is profitable and growing, we're not too worried by this. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. 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. Case in point: We've spotted 3 warning signs for United Utilities Group you should be aware of, and 1 of them doesn't sit too well with us.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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