Have Insiders Sold UFP Technologies Shares Recently?

Anyone interested in UFP Technologies, Inc. (NASDAQ:UFPT) should probably be aware that the Chairman of the Board of Directors, R. Bailly, recently divested US$228k worth of shares in the company, at an average price of US$175 each. However, the silver lining is that the sale only reduced their total holding by 0.4%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for UFP Technologies

UFP Technologies Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Thomas Oberdorf, sold US$3.8m worth of shares at a price of US$143 per share. That means that an insider was selling shares at slightly below the current price (US$173). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 91% of Thomas Oberdorf's holding.

All up, insiders sold more shares in UFP Technologies than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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: insiders have been buying them).

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 7.3% of UFP Technologies shares, worth about US$97m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The UFP Technologies Insider Transactions Indicate?

The stark truth for UFP Technologies is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, UFP Technologies makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While we like knowing 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. For example - UFP Technologies has 1 warning sign we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.