We’d be surprised if Ultra Clean Holdings, Inc. (NASDAQ:UCTT) shareholders haven’t noticed that the Senior VP of Finance & CFO, Sheri Savage, recently sold US$473k worth of stock at US$31.92 per share. That sale was 32% of their holding, so it does make us raise an eyebrow.
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Ultra Clean Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Director, David Ibnale, for US$1.1m worth of shares, at about US$45.68 per share. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$31.56. So it is hard to draw any strong conclusion from it.
In total, Ultra Clean Holdings insiders sold more than they bought over the last year. 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!
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Does Ultra Clean Holdings Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Ultra Clean Holdings insiders own about US$27m worth of shares. That equates to 1.9% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Ultra Clean Holdings Insiders?
Insiders sold Ultra Clean Holdings shares recently, but they didn’t buy any. And our longer term analysis of insider transactions didn’t bring confidence, either. While insiders do own shares, they don’t own a heap, and they have been selling. We’re in no rush to buy! So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. In terms of investment risks, we’ve identified 3 warning signs with Ultra Clean Holdings and understanding them should be part of your investment process.
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, but not derivative transactions.
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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.
