Those following along with Uber Technologies, Inc. (NYSE:UBER) will no doubt be intrigued by the recent purchase of shares by Dara Khosrowshahi, CEO & Director of the company, who spent a stonking US$5.3m on stock at an average price of US$26.73. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 16%.
The Last 12 Months Of Insider Transactions At Uber Technologies
In fact, the recent purchase by CEO & Director Dara Khosrowshahi was not their only acquisition of Uber Technologies shares this year. Earlier in the year, they paid US$44.92 per share in a US$9.0m purchase. That means that an insider was happy to buy shares at above the current price of US$23.67. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Dara Khosrowshahi was the only individual insider to buy during the last year.
Dara Khosrowshahi bought a total of 400.00k shares over the year at an average price of US$35.83. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Uber Technologies
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Uber Technologies insiders own about US$72m worth of shares. That equates to 0.2% of the company. 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 Uber Technologies Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Uber Technologies insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Uber Technologies. At Simply Wall St, we found 2 warning signs for Uber Technologies that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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.