Insiders seem to have made the most of their holdings by selling US$468k worth of UMH Properties, Inc. (NYSE:UMH) stock at an average sell price of US$23.83 during the past year. The company’s market worth decreased by US$53m over the past week after the stock price dropped 5.1%, although insiders were able to minimize their losses
Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for UMH Properties
UMH Properties Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Stephen Wolgin, for US$192k worth of shares, at about US$24.25 per share. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. It’s of some comfort that this sale was conducted at a price well above the current share price, which is US$17.86. So it may not shed much light on insider confidence at current levels. Stephen Wolgin was the only individual insider to sell over the last year.
Happily, we note that in the last year insiders paid US$157k for 7.85k shares. But insiders sold 19.63k shares worth US$468k. Stephen Wolgin sold a total of 19.63k shares over the year at an average price of US$23.83. 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!
NYSE:UMH Insider Trading Volume September 2nd 2022
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Have UMH Properties Insiders Traded Recently?
Independent Director William Mitchell bought just US$3.0k worth of shares in that time. That’s not much at all. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.
Does UMH Properties 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. It appears that UMH Properties insiders own 6.6% of the company, worth about US$65m. 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 UMH Properties Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn’t worth writing home about. Still, the insider transactions at UMH Properties in the last 12 months are not very heartening. But it’s good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. To help with this, we’ve discovered 2 warning signs (1 doesn’t sit too well with us!) that you ought to be aware of before buying any shares in UMH Properties.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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.
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