We wouldn't blame Universal Display Corporation (NASDAQ:OLED) shareholders if they were a little worried about the fact that Lawrence Lacerte, the Independent Director recently netted about US$4.0m selling shares at an average price of US$200. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.1%.
Universal Display Insider Transactions Over The Last Year
Notably, that recent sale by Independent Director Lawrence Lacerte was not the only time they sold Universal Display shares this year. Earlier in the year, they fetched US$209 per share in a -US$6.2m sale. So we know that an insider sold shares at around the present share price of US$199. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In the last twelve months insiders netted US$17m for 88888 shares sold. Universal Display insiders didn't buy any shares over the last year. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Universal Display better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Universal Display insiders own 9.3% of the company, currently worth about US$872m 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 Do The Universal Display Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Universal Display makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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