We'd be surprised if Univest Financial Corporation (NASDAQ:UVSP) shareholders haven't noticed that the Independent Director, Roger Ballou, recently sold US$293k worth of stock at US$29.26 per share. The eyebrow raising move amounted to a reduction of 23% in their holding.
The Last 12 Months Of Insider Transactions At Univest Financial
In fact, the recent sale by Roger Ballou was the biggest sale of Univest Financial shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$27.85. 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).
Happily, we note that in the last year insiders paid US$374k for 19.77k shares. But they sold 11.00k shares for US$321k. In the last twelve months there was more buying than selling by Univest Financial insiders. The average buy price was around US$18.94. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Univest Financial
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Univest Financial insiders own about US$19m worth of shares. That equates to 2.3% of the company. 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 Univest Financial Tell Us?
Unfortunately, there has been more insider selling of Univest Financial stock, than buying, in the last three months. But we take heart from prior transactions. And insiders do own shares. So we're happy enough to look past some selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Univest Financial.
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, but not derivative transactions.
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