We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Urstadt Biddle Properties Inc. (NYSE:UBA), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Urstadt Biddle Properties Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Senior VP, John Hayes, for US$87k worth of shares, at about US$22.61 per share. That means that an insider was selling shares at around the current price of US$20.90. While we don’t usually like to see insider selling, it’s more concerning if the sales take price 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 note insiders sold 6708 shares worth US$148k. Insiders in Urstadt Biddle Properties didn’t buy any shares in the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Urstadt Biddle Properties better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Urstadt Biddle Properties Insiders Are Selling The Stock
Over the last three months, we’ve seen a bit of insider selling at Urstadt Biddle Properties. Senior VP Stephan Rapaglia only netted US$39k selling shares, in that period. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn’t enough for us to put any weight on it.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Urstadt Biddle Properties insiders own about US$137m worth of shares (which is 18% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Urstadt Biddle Properties Insider Transactions Indicate?
We did not see any insider buying in the last three months, but we did see selling. However, the sales are not big enough to concern us at all. It’s heartening that insiders own plenty of stock, but we’d like to see more insider buying, since the last year of Urstadt Biddle Properties insider transactions don’t fill us with confidence. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.