Insiders Sold US$825k Of Urban One Stock Possibly Sending Warning Sign

Last week, Urban One, Inc.'s (NASDAQ:UONE.K) stock jumped 29%, but insiders who sold US$825k worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$1.06, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Our free stock report includes 3 warning signs investors should be aware of before investing in Urban One. Read for free now.

The Last 12 Months Of Insider Transactions At Urban One

Over the last year, we can see that the biggest insider sale was by the insider, David Kantor, for US$343k worth of shares, at about US$0.98 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$0.61. So it is hard to draw any strong conclusion from it.

In the last year Urban One insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Urban One

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Urban One

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Urban One insiders own about US$16m worth of shares (which is 45% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Urban One Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Urban One shares in the last quarter. While we feel good about high insider ownership of Urban One, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Urban One. For example, Urban One has 3 warning signs (and 2 which are potentially serious) we think you should know about.

Of course Urban One 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 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.