This Insider Has Just Sold Shares In Universal Insurance Holdings

Some Universal Insurance Holdings, Inc. (NYSE:UVE) shareholders may be a little concerned to see that the Executive Chairman, Sean Downes, recently sold a substantial US$1.0m worth of stock at a price of US$20.51 per share. However, that sale only accounted for 4.8% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Universal Insurance Holdings

Universal Insurance Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Sean Downes is the biggest insider sale of Universal Insurance Holdings shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$20.59). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 4.8% of Sean Downes's stake.

Insiders in Universal Insurance Holdings didn't buy any shares in the last year. 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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Insider Ownership Of Universal Insurance Holdings

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 9.4% of Universal Insurance Holdings shares, worth about US$56m. 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 Does This Data Suggest About Universal Insurance Holdings Insiders?

Insiders haven't bought Universal Insurance Holdings stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that Universal Insurance Holdings is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. 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 Insurance Holdings. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of 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.