Yahoo Finance One Universal Music Group Insider Raised Their Stake In The Previous Year
Insiders were net buyers of Universal Music Group N.V.'s (AMS:UMG ) stock during the past year. That is, insiders bought more stock than they sold.
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.
Check out our latest analysis for Universal Music Group
The Last 12 Months Of Insider Transactions At Universal Music Group
The Non-Independent & Non-Executive Director William Ackman made the biggest insider purchase in the last 12 months. That single transaction was for €6.4m worth of shares at a price of €23.34 each. We do like to see buying, but this purchase was made at well below the current price of €28.86. 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.
William Ackman bought 536.33k shares over the last 12 months at an average price of €23.33. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
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. It's great to see that Universal Music Group insiders own 28% of the company, worth about €15b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Universal Music Group Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Universal Music Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Universal Music Group insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Universal Music Group. While conducting our analysis, we found that Universal Music Group has 1 warning sign and it would be unwise to ignore this.
Of course Universal Music Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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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.
