Don't Ignore The Insider Selling In Upland Software

We note that the Upland Software, Inc. (NASDAQ:UPLD) Director, Timothy Mattox, recently sold US$50k worth of stock for US$2.52 per share. However we note that the sale only shrunk their holding by 4.9%.

View our latest analysis for Upland Software

Upland Software Insider Transactions Over The Last Year

The Founder John McDonald made the biggest insider purchase in the last 12 months. That single transaction was for US$197k worth of shares at a price of US$1.98 each. Even though the purchase was made at a significantly lower price than the recent price (US$2.53), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

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!

Upland Software is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

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. We usually like to see fairly high levels of insider ownership. Our data indicates that Upland Software insiders own about US$9.4m worth of shares (which is 14% of the company). We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Upland Software Tell Us?

An insider sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. But insiders own relatively little of the company, from what we can see. So overall it's hard to argue insiders are bullish. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Upland Software. In terms of investment risks, we've identified 2 warning signs with Upland Software and understanding them should be part of your investment process.

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 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.