This Insider Has Just Sold Shares In Ulta Beauty
Some Ulta Beauty, Inc. (NASDAQ:ULTA) shareholders may be a little concerned to see that the President, Kecia Steelman, recently sold a substantial US$1.1m worth of stock at a price of US$546 per share. That sale reduced their total holding by 12% which is hardly insignificant, but far from the worst we've seen.
Ulta Beauty Insider Transactions Over The Last Year
Notably, that recent sale by Kecia Steelman is the biggest insider sale of Ulta Beauty shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$554, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 12% of Kecia Steelman's stake.
Insiders in Ulta Beauty didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Ulta Beauty
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Does Ulta Beauty Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.1% of Ulta Beauty shares, worth about US$36m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Ulta Beauty Insiders?
Insiders haven't bought Ulta Beauty stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Ulta Beauty makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Ulta Beauty.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.