Have Universal Insurance Holdings Insiders Been Selling Stock?

We wouldn't blame Universal Insurance Holdings, Inc. (NYSE:UVE) shareholders if they were a little worried about the fact that Jon Springer, the Director recently netted about US$722k selling shares at an average price of US$20.53. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.0%.

View our latest analysis for Universal Insurance Holdings

Universal Insurance Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Jon Springer was the biggest sale of Universal Insurance Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$20.52. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year we saw more insider selling of Universal Insurance Holdings shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Universal Insurance Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Universal Insurance Holdings insiders own about US$59m worth of shares. That equates to 10.0% 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 Universal Insurance Holdings Tell Us?

Insiders sold Universal Insurance Holdings shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Universal Insurance Holdings makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! While it's good to be aware of 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. To help with this, we've discovered 2 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in Universal Insurance Holdings.

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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.