Stock Analysis

Don't Ignore The Fact That This Insider Just Sold Some Shares In Upland Software, Inc. (NASDAQ:UPLD)

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NasdaqGM:UPLD
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We wouldn't blame Upland Software, Inc. (NASDAQ:UPLD) shareholders if they were a little worried about the fact that John McDonald, the Founder recently netted about US$1.7m selling shares at an average price of US$50.03. However, that sale only accounted for 2.1% of their holding, so arguably it doesn't say much about their conviction.

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Upland Software Insider Transactions Over The Last Year

Notably, that recent sale by John McDonald is the biggest insider sale of Upland Software shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$47.98. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In total, Upland Software insiders sold more than they bought over the last year. 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!

insider-trading-volume
NasdaqGM:UPLD Insider Trading Volume January 28th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Upland Software 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. Upland Software insiders own 8.1% of the company, currently worth about US$117m based on the recent share price. 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 Does This Data Suggest About Upland Software Insiders?

An insider sold Upland Software shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 3 warning signs for Upland Software and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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What are the risks and opportunities for Upland Software?

Upland Software, Inc. provides cloud-based enterprise work management software in the United States, the United Kingdom, Canada, and internationally.

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Rewards

  • Trading at 33.8% below our estimate of its fair value

Risks

  • Shareholders have been diluted in the past year

  • Currently unprofitable and not forecast to become profitable over the next 3 years

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