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Even if it's not a huge purchase, we think it was good to see that John McDonald, the Founder of Upland Software, Inc. (NASDAQ:UPLD) recently shelled out US$96k to buy stock, at US$4.78 per share. However, it only increased their shares held by 1.1%, and it wasn't a huge purchase by absolute value, either.
See our latest analysis for Upland Software
Upland Software Insider Transactions Over The Last Year
Notably, that recent purchase by Founder John McDonald was not the only time they bought Upland Software shares this year. Earlier in the year, they paid US$10.99 per share in a US$325k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$4.44). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. John McDonald was the only individual insider to buy shares in the last twelve months.
John McDonald bought 110.00k shares over the last 12 months at an average price of US$9.96. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Upland Software
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 7.5% of Upland Software shares, worth about US$11m. 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 Upland Software Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Upland Software we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Upland Software. Every company has risks, and we've spotted 3 warning signs for Upland Software you should know about.