We wouldn't blame Urban Outfitters, Inc. (NASDAQ:URBN) shareholders if they were a little worried about the fact that Francis Conforti, the COO & Co-President recently netted about US$2.2m selling shares at an average price of US$60.05. Probably the most concerning element of the whole transaction is that the disposal amounted to 99% of their entire holding.

The Last 12 Months Of Insider Transactions At Urban Outfitters

The Independent Director, Harry Cherken, made the biggest insider sale in the last 12 months. That single transaction was for US$3.2m worth of shares at a price of US$57.59 each. So we know that an insider sold shares at around the present share price of US$54.23. 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 Urban Outfitters 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Urban Outfitters insiders own 28% of the company, currently worth about US$1.4b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Urban Outfitters Insiders?

Insiders sold Urban Outfitters shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Urban Outfitters is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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. In terms of investment risks, we've identified 1 warning sign with Urban Outfitters and understanding it should be part of your investment process.

But note: Urban Outfitters 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.