Some United Airlines Holdings, Inc. (NASDAQ:UAL) shareholders may be a little concerned to see that the President, Brett Hart, recently sold a substantial US$3.5m worth of stock at a price of US$45.14 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 69% of their entire holding.
United Airlines Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Oscar Munoz, for US$4.6m worth of shares, at about US$40.24 per share. That means that an insider was selling shares at slightly below the current price (US$44.34). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 46% of Oscar Munoz's stake.
In total, United Airlines Holdings insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of United Airlines Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that United Airlines Holdings insiders own 0.3% of the company, worth about US$37m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At United Airlines Holdings Tell Us?
An insider hasn't bought United Airlines Holdings 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. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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. Be aware that United Airlines Holdings is showing 4 warning signs in our investment analysis, and 1 of those shouldn't be ignored...
But note: United Airlines Holdings 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, but not derivative transactions.
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.
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