This Insider Has Just Sold Shares In Universal Technical Institute

Anyone interested in Universal Technical Institute, Inc. (NYSE:UTI) should probably be aware that the Independent Director, George Brochick, recently divested US$221k worth of shares in the company, at an average price of US$27.59 each. The eyebrow raising move amounted to a reduction of 19% in their holding.

View our latest analysis for Universal Technical Institute

Universal Technical Institute Insider Transactions Over The Last Year

The CEO & Director, Jerome Grant, made the biggest insider sale in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$17.53 each. That means that even when the share price was below the current price of US$28.24, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. This single sale was just 33% of Jerome Grant's stake.

In the last year Universal Technical Institute insiders didn't buy any company stock. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Universal Technical Institute Boast High Insider Ownership?

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. Insiders own 2.9% of Universal Technical Institute shares, worth about US$45m. 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 Universal Technical Institute Insiders?

An insider sold Universal Technical Institute shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Universal Technical Institute is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Universal Technical Institute. In terms of investment risks, we've identified 1 warning sign with Universal Technical Institute and understanding this should be part of your investment process.

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 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.