- United States
Insiders who sold UDR, Inc.'s (NYSE:UDR) earlier year may find some solace in the 3.4% drop
Even though UDR, Inc. (NYSE:UDR) has fallen by 3.4% over the past week , insiders who sold US$809k worth of stock over the past year have had less luck. Given that the average selling price of US$40.44 is still lower than the current share price, insiders would probably have been better off keeping their shares.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for UDR
UDR Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Chairman & CEO, Thomas Toomey, for US$809k worth of shares, at about US$40.44 per share. That means that an insider was selling shares at below the current price (US$40.64). 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. We note that the biggest single sale was only 2.0% of Thomas Toomey's holding. The only individual insider seller over the last year was Thomas Toomey.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like UDR better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does UDR 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. I reckon it's a good sign if insiders own a significant number of shares in the company. UDR insiders own about US$77m worth of shares. That equates to 0.5% of the company. 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 UDR Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at UDR in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for UDR (of which 1 makes us a bit uncomfortable!) you should know about.
Of course UDR 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.
Valuation is complex, but we're helping make it simple.
Find out whether UDR is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free Analysis
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust.
Established dividend payer with moderate growth potential.