This Insider Has Just Sold Shares In Unity Software \

Some Unity Software Inc. (NYSE:U) shareholders may be a little concerned to see that the CEO, President & Executive Chairman, John Riccitiello, recently sold a substantial US$1.0m worth of stock at a price of US$27.72 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.3%.

Check out our latest analysis for Unity Software

The Last 12 Months Of Insider Transactions At Unity Software

In fact, the recent sale by John Riccitiello was the biggest sale of Unity Software shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$31.00). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 1.3%of John Riccitiello's holding.

In the last year Unity Software insiders didn't buy any company stock. 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!

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Does Unity Software Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Unity Software insiders own 11% of the company, currently worth about US$1.3b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Unity Software Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. 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 Unity Software. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Unity Software.

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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, but not derivative transactions.

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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.