Some Urban Outfitters, Inc. (NASDAQ:URBN) shareholders may be a little concerned to see that the COO & Co-President, Francis Conforti, recently sold a substantial US$687k worth of stock at a price of US$73.19 per share. That sale reduced their total holding by 12% which is hardly insignificant, but far from the worst we've seen.

Urban Outfitters Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Richard Hayne, for US$5.8m worth of shares, at about US$74.97 per share. That means that an insider was selling shares at below the current price (US$75.15). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 0.3% of Richard Hayne's holding.

In the last year Urban Outfitters insiders didn't buy any company stock. 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: Most of them are flying under the radar).

Insider Ownership Of Urban Outfitters

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Urban Outfitters insiders own about US$1.9b worth of shares (which is 29% of the company). 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 Urban Outfitters Tell Us?

Insiders sold Urban Outfitters shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Urban Outfitters is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with Urban Outfitters and understanding this should be part of your investment process.

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.

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.