Some Universal Insurance Holdings, Inc. (NYSE:UVE) shareholders may be a little concerned to see that the Executive Chairman, Sean Downes, recently sold a substantial US$692k worth of stock at a price of US$34.60 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.6%.

Universal Insurance Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO & Director, Stephen Donaghy, sold US$1.7m worth of shares at a price of US$34.07 per share. So we know that an insider sold shares at around the present share price of US$33.67. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last year Universal Insurance Holdings insiders didn't buy any company stock. 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!

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Insider Ownership Of Universal Insurance Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 9.2% of Universal Insurance Holdings shares, worth about US$87m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Universal Insurance Holdings Tell Us?

Insiders haven't bought Universal Insurance Holdings stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Universal Insurance Holdings is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. Be aware that Universal Insurance Holdings is showing 2 warning signs in our investment analysis, and 1 of those can't be ignored...

But note: Universal Insurance Holdings 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.

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.