The recent 12% drop in United Airlines Holdings, Inc.'s (NASDAQ:UAL) stock could come as a blow to insiders who purchased US$5.9m worth of stock at an average buy price of US$39.38 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$5.0m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for United Airlines Holdings

The Last 12 Months Of Insider Transactions At United Airlines Holdings

The Independent Director Edward Shapiro made the biggest insider purchase in the last 12 months. That single transaction was for US$2.2m worth of shares at a price of US$45.20 each. That means that an insider was happy to buy shares at above the current price of US$33.07. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Edward Shapiro was the only individual insider to buy during the last year.

Edward Shapiro bought 150.00k shares over the last 12 months at an average price of US$39.38. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

United Airlines Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At United Airlines Holdings Have Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at United Airlines Holdings. Independent Director Edward Shapiro spent US$1.8m on stock. But insider Gregory Hart sold shares worth US$544k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership Of United Airlines Holdings

Many investors like to check how much of a company is owned by 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. Insiders own 0.4% of United Airlines Holdings shares, worth about US$46m. 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 Airlines Holdings Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of United Airlines Holdings we think they are probably pretty confident of a bright future. 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 1 warning sign we think you should be aware of.

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. 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.