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The fact that multiple United Rentals, Inc. (NYSE:URI) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for United Rentals
United Rentals Insider Transactions Over The Last Year
The insider, Dale Asplund, made the biggest insider sale in the last 12 months. That single transaction was for US$6.7m worth of shares at a price of US$475 each. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$478. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 100% of Dale Asplund's holding.
All up, insiders sold more shares in United Rentals than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At United Rentals Have Sold Stock Recently
The last quarter saw substantial insider selling of United Rentals shares. Specifically, insider Dale Asplund ditched US$6.7m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership Of United Rentals
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. United Rentals insiders own about US$137m worth of shares (which is 0.4% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.