Numerous Urban One Insiders Sold Stock: Not A Positive Omen
Urban One, Inc. (NASDAQ:UONE.K) shareholders may have reason to be concerned, as several insiders sold their shares over the past year. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Urban One Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Brian McNeill, sold US$180k worth of shares at a price of US$0.82 per share. That means that even when the share price was below the current price of US$0.90, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 49% of Brian McNeill's holding.
Urban One insiders didn't buy any shares 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!
See our latest analysis for Urban One
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).
Have Urban One Insiders Traded Recently?
In the last three months company Independent Director Terry Jones divested US$2.1k worth of stock. That is not a lot. Ultimately the overall selling isn't enough to tell us much.
Insider Ownership Of Urban One
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. Urban One insiders own 48% of the company, currently worth about US$19m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Urban One Insider Transactions Indicate?
While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we're not concerned. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Urban One insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Urban One. For example, Urban One has 4 warning signs (and 3 which don't sit too well with us) we think you should know about.
But note: Urban One 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 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.