Investors who take an interest in United Natural Foods, Inc. (NYSE:UNFI) should definitely note that the CEO & Director, James Alexander Douglas, recently paid US$13.32 per share to buy US$150k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 19%.
Check out our latest analysis for United Natural Foods
United Natural Foods Insider Transactions Over The Last Year
In fact, the recent purchase by CEO & Director James Alexander Douglas was not their only acquisition of United Natural Foods shares this year. They previously made an even bigger purchase of US$1.0m worth of shares at a price of US$22.22 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$14.76). 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. The only individual insider to buy over the last year was James Alexander Douglas.
James Alexander Douglas bought 56.43k shares over the last 12 months at an average price of US$20.44. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Does United Natural Foods Boast High Insider Ownership?
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. Insiders own 2.0% of United Natural Foods shares, worth about US$17m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About United Natural Foods Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Insiders likely see value in United Natural Foods shares, given these transactions (along with notable insider ownership of the company). While we like knowing 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. Every company has risks, and we've spotted 5 warning signs for United Natural Foods (of which 2 are significant!) you should know about.
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 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.