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Uber Technologies, Inc. (NYSE:UBER) shareholders (or potential shareholders) will be happy to see that the CEO & Director, Dara Khosrowshahi, recently bought a whopping US$5.3m worth of stock, at a price of US$26.73. Not only is that a big swing, but it increased their holding size by 16%, which is definitely great to see.
View our latest analysis for Uber Technologies
Uber Technologies Insider Transactions Over The Last Year
In fact, the recent purchase by CEO & Director Dara Khosrowshahi was not their only acquisition of Uber Technologies shares this year. They previously made an even bigger purchase of US$9.0m worth of shares at a price of US$44.92 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$23.67). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Dara Khosrowshahi.
Dara Khosrowshahi purchased 400.00k shares over the year. The average price per share was US$35.83. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Uber Technologies insiders own about US$72m worth of shares. That equates to 0.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Uber Technologies Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Uber Technologies insiders are well aligned, and that they may think the share price is too low. 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. You'd be interested to know, that we found 2 warning signs for Uber Technologies and we suggest you have a look.