We wouldn't blame United Rentals, Inc. (NYSE:URI) shareholders if they were a little worried about the fact that Matthew Flannery, the President recently netted about US$5.9m selling shares at an average price of US$700. However, that sale only accounted for 7.9% of their holding, so arguably it doesn't say much about their conviction.
United Rentals Insider Transactions Over The Last Year
The insider, Dale Asplund, made the biggest insider sale in the last 12 months. That single transaction was for US$6.7m worth of shares at a price of US$475 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$654. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. This single sale was 100% of Dale Asplund's stake.
In the last year United Rentals insiders didn't buy any company stock. 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!
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Insider Ownership
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. United Rentals insiders own 0.5% of the company, currently worth about US$207m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The United Rentals Insider Transactions Indicate?
Insiders haven't bought United Rentals 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. But since United Rentals is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing United Rentals. At Simply Wall St, we found 2 warning signs for United Rentals that deserve your attention before buying any shares.
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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.