Insider Buyers At Universal Electronics Recover Some Losses, But Still Down US$184k

Insiders who bought US$392.3k worth of Universal Electronics Inc. (NASDAQ:UEIC) stock in the last year have seen some of their losses recouped as the stock gained 15% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$184k since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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Universal Electronics Insider Transactions Over The Last Year

The Independent Chairman of the Board Eric Singer made the biggest insider purchase in the last 12 months. That single transaction was for US$162k worth of shares at a price of US$6.73 each. That means that an insider was happy to buy shares at above the current price of US$3.61. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid US$392k for 57.83k shares. But insiders sold 2.29k shares worth US$13k. In total, Universal Electronics insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 Universal Electronics

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Are Universal Electronics Insiders Buying Or Selling?

In the last quarter Consultant Cheung Chong sold US$1.7k worth of equity. That's not a lot. Looking at the net result, we don't think this recent trading sheds much light on how insiders, as a group, are feeling about the company's prospects.

Insider Ownership Of Universal Electronics

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. Our data indicates that Universal Electronics insiders own about US$2.8m worth of shares (which is 6.5% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Universal Electronics Insider Transactions Indicate?

While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we're not worried. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Universal Electronics insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Universal Electronics. In terms of investment risks, we've identified 2 warning signs with Universal Electronics and understanding these should be part of your investment process.

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 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.