Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of United Parcel Service, Inc. (NYSE:UPS), that sends out a positive message to the company’s shareholders.
Although we don’t think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At United Parcel Service
The Independent Director Wayne Hewett made the biggest insider purchase in the last 12 months. That single transaction was for US$100k worth of shares at a price of US$160 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$202. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.