Some United Fire Group, Inc. (NASDAQ:UFCS) shareholders may be a little concerned to see that the Independent Director, Scott Carlton, recently sold a substantial US$543k worth of stock at a price of US$55.52 per share. However, that sale only accounted for 4.6% of their holding, so arguably it doesn't say much about their conviction.
United Fire Group Insider Transactions Over The Last Year
In fact, the recent sale by Scott Carlton was the biggest sale of United Fire Group shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$53.67. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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).
All up, insiders sold more shares in United Fire Group than they bought, 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!
View our latest analysis for United Fire Group
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 Fire Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. United Fire Group insiders own 14% of the company, currently worth about US$193m 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 Do The United Fire Group Insider Transactions Indicate?
An insider hasn't bought United Fire Group stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, United Fire Group 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. Be aware that United Fire Group is showing 3 warning signs in our investment analysis, and 1 of those is a bit concerning...
Of course United Fire Group 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.