We wouldn't blame United Parcel Service, Inc. (NYSE:UPS) shareholders if they were a little worried about the fact that Norman Brothers, the Executive VP recently netted about US$1.0m selling shares at an average price of US$139. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

The Last 12 Months Of Insider Transactions At United Parcel Service

Notably, that recent sale by Norman Brothers is the biggest insider sale of United Parcel Service shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$136. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid US$842k for 6.40k shares. But insiders sold 7.33k shares worth US$1.0m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does United Parcel Service 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. We usually like to see fairly high levels of insider ownership. Insiders own 0.07% of United Parcel Service shares, worth about US$83m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About United Parcel Service Insiders?

An insider sold United Parcel Service shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that United Parcel Service has 4 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

Of course United Parcel Service may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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.