Insiders who made big bets on United Insurance Holdings Corp. (NASDAQ: UIHC ) earlier this year would be disappointed by a 10% drop

Recent price drop of 10% in United Insurance Holdings Corp (NASDAQ: UIHC ) shares may have disappointed insiders, who bought $1.3 million worth of shares at an average price of $2.54 over the past 12 months. Insiders invest in the hope that their money will increase in value over time. However, due to recent losses, their initial investment is now worth only US$636,000, which is not what they expected.

While we don’t think shareholders should simply monitor insider trading, we do think it makes perfect sense to monitor what insiders are doing.

Check out our latest analysis on United Insurance Holdings

Insider trading at United Insurance Holdings over the past year

Underwriting manager Brooke Shirazi made the biggest insider purchase of the past 12 months. This one trade involved $220,000 worth of shares at $3.17. So it’s clear that the insider wanted to buy, even at a price higher than the current share price (US$1.25). It is very possible that they will regret the purchase, but more likely they will feel good about the company. We always pay close attention to the price that insiders pay when buying shares. As a general rule, we are more positive about a stock when insiders have bought the stock above current prices, as this suggests that they viewed the stock as good value even at the higher price.

Although United Insurance Holdings insiders bought shares last year, they did not sell. The average purchase price was about US$2.54. I would consider this a positive as it suggests that insiders see value around the current price. The chart below shows insider trading (by companies and individuals) over the past year. Click on the graph below to see the exact details of each insider trade!

NasdaqCM: UIHC Insider Trading Volume on July 22, 2022

Insiders always buy a lot of stocks. So if it suits your style, you can check each stock individually or view it for free list of companies. (Hint: insiders have bought them).

United Insurance Holdings Insiders recently bought shares

It’s nice to see that United Insurance Holdings insiders have made significant investments in the company’s stock. Not only did they sell, but they collectively bought $394,000 worth of stock. It makes you think that the company has good points.

Insider property

I like to look at how much stock insiders own in a company to help my view of how similar they are to insiders. I think it’s a good sign when insiders own a significant number of a company’s shares. United Insurance Holdings insiders own approximately $28 million worth of stock (which represents 52% of the company). Such significant insider ownership generally increases the likelihood that the company will be run in the best interests of all shareholders.

What Can United Insurance Holdings’ Insider Trading Tell Us?

Recent insider purchases are gratifying. And longer-term insider trading also gives us confidence. However, we note that the company did not turn a profit in the last 12 months, which makes us cautious. Considering the large insider ownership, insiders certainly seem positive about United Insurance Holdings. At least one watchlist! While we like to know what’s going on with insider ownership and trades, we also make sure to consider what risks a stock faces before making an investment decision. To help with this, we have discovered 5 warning signs (2 is a little alarming!) What you should know before buying United Insurance Holdings stock.

Of course, you may find a fantastic investment by looking elsewhere. So check it out for free list of interesting companies.

For the purposes of this article, insiders are those persons who report their transactions to the relevant regulatory authority. We currently consider open market transactions and private placements, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using an unbiased methodology, and our articles are not intended to constitute financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our goal is to bring you long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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