Some Utz Brands, Inc. (NYSE:UTZ) shareholders may be a little concerned to see that the Executive VP and Chief Operating & Transformation Officer, Cary Devore, recently sold a substantial US$760k worth of stock at a price of US$18.99 per share. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.
Utz Brands Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Chinh Chu, for US$6.1m worth of shares, at about US$18.14 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$18.32. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 9.2% of Chinh Chu's holding.
Happily, we note that in the last year insiders paid US$567k for 40.52k shares. But insiders sold 743.98k shares worth US$14m. Over the last year we saw more insider selling of Utz Brands shares, than buying. The sellers received a price of around US$18.15, on average. It's not particularly great to see insiders were selling shares at below recent prices. But we wouldn't put too much weight on the insider selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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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Does Utz Brands Boast High 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. Utz Brands insiders own 8.8% of the company, currently worth about US$226m based on the recent share price. 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 Does This Data Suggest About Utz Brands Insiders?
Insiders haven't bought Utz Brands stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. At Simply Wall St, we found 1 warning sign for Utz Brands 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.