Anyone interested in Universal Technical Institute, Inc. (NYSE:UTI) should probably be aware that the Independent Director, Loretta Sanchez, recently divested US$131k worth of shares in the company, at an average price of US$15.07 each. The eyebrow raising move amounted to a reduction of 30% in their holding.

See our latest analysis for Universal Technical Institute

Universal Technical Institute Insider Transactions Over The Last Year

In fact, the recent sale by Loretta Sanchez was the biggest sale of Universal Technical Institute shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$15.94). 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. It is worth noting that this sale was only 30% of Loretta Sanchez's holding.

Loretta Sanchez ditched 16.32k shares over the year. The average price per share was US$12.02. 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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Does Universal Technical Institute Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.8% of Universal Technical Institute shares, worth about US$24m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Universal Technical Institute Insider Transactions Indicate?

An insider sold Universal Technical Institute shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Universal Technical Institute makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. 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 Universal Technical Institute.

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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.