Don't Ignore The Fact That This Insider Just Sold Some Shares In Unisys Corporation (NYSE:UIS)

By
Simply Wall St
Published
June 10, 2021
NYSE:UIS
Source: Shutterstock

We'd be surprised if Unisys Corporation (NYSE:UIS) shareholders haven't noticed that an insider, Lisa Madion, recently sold US$201k worth of stock at US$28.36 per share. In particular, we note that the sale equated to a 53% reduction in their position size, which doesn't exactly instill confidence.

Check out our latest analysis for Unisys

Unisys Insider Transactions Over The Last Year

In fact, the recent sale by Lisa Madion was the biggest sale of Unisys 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$26.82. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:UIS Insider Trading Volume June 11th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Unisys Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.6% of Unisys shares, worth about US$47m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Unisys Tell Us?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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. To help with this, we've discovered 3 warning signs (1 can't be ignored!) that you ought to be aware of before buying any shares in Unisys.

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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This article by Simply Wall St is general in nature. 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.
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