United Parcel Service Insider Lowered Holding By 100% During Last Year

Insiders were net sellers of United Parcel Service, Inc.'s (NYSE:UPS ) stock during the past year. That is, insiders sold more stock than they bought.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for United Parcel Service

The Last 12 Months Of Insider Transactions At United Parcel Service

Over the last year, we can see that the biggest insider sale was by the Executive VP & President of U.S. and UPS Airline, Nando Cesarone, for US$3.9m worth of shares, at about US$172 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$125. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Nando Cesarone.

Happily, we note that in the last year insiders paid US$842k for 6.40k shares. But insiders sold 22.83k shares worth US$3.9m. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insiders At United Parcel Service Have Bought Stock Recently

It's good to see that United Parcel Service insiders have made notable investments in the company's shares. Specifically, Independent Non-Executive Chairman William Johnson bought US$643k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership Of United Parcel Service

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. I reckon it's a good sign if insiders own a significant number of shares in the company. United Parcel Service insiders own about US$77m worth of shares. That equates to 0.07% 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.

So What Do The United Parcel Service Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. We don't take much heart from transactions by United Parcel Service insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for United Parcel Service you should be aware of, and 1 of these is a bit unpleasant.

Of course United Parcel Service 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com