Insider Returns Down To US$1.7m As United Insurance Holdings' Stock Dips 12% \

Insiders who bought United Insurance Holdings Corp. (NASDAQ:UIHC) stock lover the last 12 months are probably not as affected by last week’s 12% loss. Reason being, despite the recent loss, insiders original purchase value of US$330k is now worth US$2.1m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for United Insurance Holdings

United Insurance Holdings Insider Transactions Over The Last Year

The Independent Lead Director Alec Poitevint made the biggest insider purchase in the last 12 months. That single transaction was for US$86k worth of shares at a price of US$0.50 each. Even though the purchase was made at a significantly lower price than the recent price (US$4.09), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Happily, we note that in the last year insiders paid US$330k for 506.16k shares. On the other hand they divested 35.00k shares, for US$18k. In the last twelve months there was more buying than selling by United Insurance Holdings insiders. Their average price was about US$0.65. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that United Insurance Holdings insiders own 53% of the company, worth about US$94m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At United Insurance Holdings Tell Us?

It doesn't really mean much that no insider has traded United Insurance Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, United Insurance Holdings insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 4 warning signs for United Insurance Holdings that deserve your attention before buying any shares.

Of course United Insurance Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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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.