Possible bearish signals as United Airlines Holdings, Inc. (NASDAQ:UAL) insiders disposed of US$5.1m worth of stock

By
Simply Wall St
Published
January 11, 2022
NasdaqGS:UAL
Source: Shutterstock

Many United Airlines Holdings, Inc. (NASDAQ:UAL) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for United Airlines Holdings

The Last 12 Months Of Insider Transactions At United Airlines Holdings

Over the last year, we can see that the biggest insider sale was by the President, Brett Hart, for US$3.5m worth of shares, at about US$45.14 per share. That means that even when the share price was below the current price of US$46.58, an insider wanted to cash in some shares. 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 69% of Brett Hart's holding.

United Airlines Holdings insiders didn't buy any shares 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:UAL Insider Trading Volume January 11th 2022

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of United Airlines Holdings

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that United Airlines Holdings insiders own 0.2% of the company, worth about US$34m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The United Airlines Holdings Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by United Airlines Holdings insiders. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing United Airlines Holdings. For example, United Airlines Holdings has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.

Of course United Airlines Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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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