Have Insiders Sold Urban Outfitters Shares Recently?

Some Urban Outfitters, Inc. (NASDAQ:URBN) shareholders may be a little concerned to see that the Co-Founder, Richard Hayne, recently sold a substantial US$225m worth of stock at a price of US$79,198 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.01%.

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The Last 12 Months Of Insider Transactions At Urban Outfitters

In fact, the recent sale by Richard Hayne was the biggest sale of Urban Outfitters shares made by an insider individual in the last twelve months, according to our records. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$81.84. So it may not tell us anything about how insiders feel about the current share price.

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. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Urban Outfitters

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Does Urban Outfitters Boast High Insider Ownership?

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Urban Outfitters insiders own 28% of the company, worth about US$2.1b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Urban Outfitters Insiders?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But since Urban Outfitters is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Urban Outfitters and understanding it should be part of your investment process.

Of course Urban Outfitters 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.