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$4.0m worth of stock at a price of US$103 per share. That's a big disposal, and it decreased their holding size by 11%, which is notable but not too bad.
United Airlines Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Executive Vice President of Human Resources & Labor Relations, Kate Gebo, for US$4.2m worth of shares, at about US$106 per share. That means that an insider was selling shares at slightly below the current price (US$110). 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. We note that the biggest single sale was only 24% of Kate Gebo's holding.
Insiders in United Airlines Holdings didn't buy any shares in 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!
Check out our latest analysis for United Airlines Holdings
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Does United Airlines Holdings 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. I reckon it's a good sign if insiders own a significant number of shares in the company. United Airlines Holdings insiders own 0.6% of the company, currently worth about US$235m 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.
What Might The Insider Transactions At United Airlines Holdings Tell Us?
Insiders sold United Airlines Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since United Airlines Holdings is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing United Airlines Holdings. At Simply Wall St, we found 3 warning signs for United Airlines Holdings that deserve your attention before buying any shares.
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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