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$6.3m selling shares at an average price of US$50.54. However, that sale only accounted for 7.6% of their holding, so arguably it doesn't say much about their conviction.
Upland Software Insider Transactions Over The Last Year
In fact, the recent sale by John McDonald was the biggest sale of Upland Software shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$50.09. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Upland Software insiders own 7.7% of the company, currently worth about US$114m 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 Do The Upland Software Insider Transactions Indicate?
An insider sold Upland Software shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Upland Software. Every company has risks, and we've spotted 3 warning signs for Upland Software you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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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