We wouldn't blame UFP Industries, Inc. (NASDAQ:UFPI) shareholders if they were a little worried about the fact that William Currie, the Independent Director recently netted about US$2.3m selling shares at an average price of US$113. That's a big disposal, and it decreased their holding size by 15%, which is notable but not too bad.
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The Last 12 Months Of Insider Transactions At UFP Industries
Notably, that recent sale by Independent Director William Currie was not the only time they sold UFP Industries shares this year. They previously made an even bigger sale of -US$4.0m worth of shares at a price of US$85.10 per share. That means that even when the share price was below the current price of US$110, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 24%of William Currie's holding.
Insiders in UFP Industries didn't buy any shares in 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!
I will like UFP Industries better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. UFP Industries insiders own about US$167m worth of shares (which is 2.5% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The UFP Industries Insider Transactions Indicate?
Insiders haven't bought UFP Industries 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. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For example - UFP Industries has 1 warning sign we think you should be aware of.
But note: UFP Industries may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.