Universal Electronics Inc. (NASDAQ:UEIC) insiders who sold US$1.2m worth of stock earlier this year are probably glad they did so as market cap slides to US$383m

By
Simply Wall St
Published
February 21, 2022
NasdaqGS:UEIC
Source: Shutterstock

By selling US$1.2m worth of Universal Electronics Inc. (NASDAQ:UEIC) stock at an average sell price of US$59.35 over the last year, insiders seemed to have made the most of their holdings. The company's market valuation decreased by US$83m after the stock price dropped 16% over the past week, but insiders were spared from painful losses.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Universal Electronics

Universal Electronics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Director, Satjiv Chahil, for US$247k worth of shares, at about US$61.63 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$29.90. So it may not shed much light on insider confidence at current levels.

Insiders in Universal Electronics didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:UEIC Insider Trading Volume February 21st 2022

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Universal Electronics

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Universal Electronics insiders own 4.7% 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.

What Might The Insider Transactions At Universal Electronics Tell Us?

The fact that there have been no Universal Electronics insider transactions recently certainly doesn't bother us. Our analysis of Universal Electronics insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. 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. You'd be interested to know, that we found 3 warning signs for Universal Electronics and we suggest you have a look.

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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.