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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in U.S. Xpress Enterprises, Inc. (NYSE:USX).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
The Last 12 Months Of Insider Transactions At U.S. Xpress Enterprises
Over the last year, we can see that the biggest insider sale was by the , Patrick Quinn, for US$14m worth of shares, at about US$15.00 per share. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. The silver lining is that this sell-down took place above the latest price (US$5.41). So it is hard to draw any strong conclusion from it.
Happily, we note that in the last year insiders paid US$8.8m for 627k shares. On the other hand they divested 3.3m shares, for US$50m. Over the last year we saw more insider selling of U.S. Xpress Enterprises shares, than buying. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like U.S. Xpress Enterprises better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
U.S. Xpress Enterprises Insiders Bought Stock Recently
Over the last quarter, U.S. Xpress Enterprises insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$96k worth of shares. This makes one think the business has some good points.
Insider Ownership of U.S. Xpress Enterprises
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. U.S. Xpress Enterprises insiders own about US$141m worth of shares (which is 54% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At U.S. Xpress Enterprises Tell Us?
It's certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by some insiders, along with high insider ownership, suggest that U.S. Xpress Enterprises insiders are fairly aligned, and optimistic. Of course, the future is what matters most. So if you are interested in U.S. Xpress Enterprises, you should check out this free report on analyst forecasts for the company.
Of course U.S. Xpress Enterprises 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.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.