We wouldn't blame Uber Technologies, Inc. (NYSE:UBER) shareholders if they were a little worried about the fact that Jill Hazelbaker, the Chief Marketing Officer and Senior Vice President of Communications & Public Policy recently netted about US$2.0m selling shares at an average price of US$72.90. That's a big disposal, and it decreased their holding size by 19%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Uber Technologies
Over the last year, we can see that the biggest insider sale was by the Senior VP, Derek West, for US$6.1m worth of shares, at about US$68.57 per share. That means that even when the share price was below the current price of US$71.96, an insider wanted to cash in some shares. 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. We note that the biggest single sale was only 42% of Derek West's holding.
Uber Technologies insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Does Uber Technologies Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Uber Technologies insiders own 0.1% of the company, currently worth about US$220m 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.
What Might The Insider Transactions At Uber Technologies Tell Us?
An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Uber Technologies makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Uber Technologies you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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