Investors who take an interest in Universal Health Realty Income Trust (NYSE:UHT) should definitely note that the Lead Independent Trustee, Robert McCadden, recently paid US$47.87 per share to buy US$120k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 50%.
Universal Health Realty Income Trust Insider Transactions Over The Last Year
The Independent Trustee Michael Domb made the biggest insider purchase in the last 12 months. That single transaction was for US$326k worth of shares at a price of US$56.25 each. That means that even when the share price was higher than US$48.87 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Universal Health Realty Income Trust insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Universal Health Realty Income Trust is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Universal Health Realty Income Trust
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Universal Health Realty Income Trust insiders own 1.8% of the company, worth about US$12m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Universal Health Realty Income Trust Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Universal Health Realty Income Trust we think they are probably pretty confident of a bright future. While we like knowing 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. When we did our research, we found 2 warning signs for Universal Health Realty Income Trust (1 shouldn't be ignored!) that we believe deserve your full attention.
Of course Universal Health Realty Income Trust 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.
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.