This Insider Has Just Sold Shares In Urban Outfitters

Some Urban Outfitters, Inc. (NASDAQ:URBN) shareholders may be a little concerned to see that the Co-Founder, Richard Hayne, recently sold a substantial US$2.8m worth of stock at a price of US$70.29 per share. However, that sale only accounted for 0.2% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At Urban Outfitters

Notably, that recent sale by Co-Founder Richard Hayne was not the only time they sold Urban Outfitters shares this year. They previously made an even bigger sale of -US$5.8m worth of shares at a price of US$74.97 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place 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$66.60. So it may not tell us anything about how insiders feel about the current share price.

Urban Outfitters insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Urban Outfitters

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Does Urban Outfitters Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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 Outfitters insiders own 28% of the company, currently worth about US$1.7b based on the recent share price. 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 Does This Data Suggest About Urban Outfitters Insiders?

Insiders sold Urban Outfitters shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Urban Outfitters is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Urban Outfitters. In terms of investment risks, we've identified 1 warning sign with Urban Outfitters and understanding it should be part of your investment process.

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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.