Many Upland Software, Inc. (NASDAQ: UPLD) Insiders have abandoned their shares in the past year, which may be of interest to the company’s shareholders. When evaluating insider trading, it is usually more beneficial to know whether insiders are buying or selling, as the latter can be subject to many interpretations. However, if many insiders are selling, shareholders should investigate further.
While we don’t believe shareholders should just follow insider trading, we believe it would be foolish to ignore insider trading altogether.
The last 12 months of insider trading at Upland Software
Founder John McDonald had the biggest insider sale in the past 12 months. This one-time transaction involved shares valued at US $ 6.3 million at a price of US $ 51.00 each. While insider selling is negative, for us it is even more so if stocks are sold for a lower price. It is heartwarming that this sale was made at a much higher price than the current share price of US $ 18.63. So it might not shed much light on insider confidence at current levels.
Upland Software insiders haven’t bought any shares in the past year. Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. If you click on the chart, you can see all of the individual trades including the stock price, individual and date!
NasdaqGM: UPLD Insider Trading Volume December 31, 2021
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Upland Software Insiders Sell Stock
The last quarter saw significant insider sales of Upland Software shares. In total, Executive Vice President Kinloch Gill sold US $ 76,000 worth of shares during this period and we did not record any purchases. In light of this, it’s hard to say that all insiders think stocks are a good deal.
Another way to test the alignment between a company’s executives and other shareholders is to look at how many shares they own. We generally like to see fairly high levels of insider ownership. Insiders own 7.7% of Upland Software’s shares, worth around $ 44 million. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.
What might insider trading at Upland Software tell us?
An insider recently sold shares of Upland Software, but they didn’t buy any. Looking at the past twelve months, our data shows no insider buying. Insiders own stocks, but we remain fairly cautious given the sales history. We are in no rush to buy! While we love to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. At Simply Wall St, we found 4 warning signs for Upland Software that deserve your attention before buying stocks.
Sure, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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