Senior VP Of Uber Technologies Sold 34% Of Their Shares

Some Uber Technologies, Inc. (NYSE:UBER) shareholders may be a little concerned to see that the Senior VP, Derek West, recently sold a substantial US$3.3m worth of stock at a price of US$70.59 per share. That's a big disposal, and it decreased their holding size by 34%, which is notable but not too bad.

Check out our latest analysis for Uber Technologies

The Last 12 Months Of Insider Transactions At Uber Technologies

In fact, the recent sale by Senior VP Derek West was not their only sale of Uber Technologies shares this year. They previously made an even bigger sale of -US$6.1m worth of shares at a price of US$68.57 per share. That means that an insider was selling shares at slightly below the current price (US$73.02). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 42% of Derek West's holding.

Uber Technologies insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Uber Technologies insiders own about US$218m worth of shares (which is 0.1% of the company). 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 Does This Data Suggest About Uber Technologies Insiders?

Insiders haven't bought Uber Technologies stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that Uber Technologies is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. While conducting our analysis, we found that Uber Technologies has 2 warning signs and it would be unwise to ignore them.

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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 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.