Don't Ignore The Insider Selling In Univest Financial

We'd be surprised if Univest Financial Corporation (NASDAQ:UVSP) shareholders haven't noticed that the Independent Director, Thomas Petro, recently sold US$286k worth of stock at US$31.75 per share. The eyebrow raising move amounted to a reduction of 15% in their holding.

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The Last 12 Months Of Insider Transactions At Univest Financial

Notably, that recent sale by Thomas Petro is the biggest insider sale of Univest Financial shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$31.67. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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 US$111k for 3.85k shares. On the other hand they divested 9.00k shares, for US$286k. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Univest Financial

I will like Univest Financial 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.

Insider Ownership Of Univest Financial

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Univest Financial insiders own 2.0% of the company, worth about US$18m. 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 Does This Data Suggest About Univest Financial Insiders?

The insider sales have outweighed the insider buying, at Univest Financial, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Univest Financial is profitable and growing, we're not too worried by this. 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. Case in point: We've spotted 1 warning sign for Univest Financial you should be aware of.

But note: Univest Financial 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.