Insiders who sold US$7.7m worth of Uber Technologies, Inc. (NYSE:UBER were amply compensated

Last week, Uber Technologies, Inc.'s (NYSE:UBER) stock jumped 3.1%, but insiders who sold US$7.7m worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$31.09, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

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.

View our latest analysis for Uber Technologies

The Last 12 Months Of Insider Transactions At Uber Technologies

Over the last year, we can see that the biggest insider purchase was by CEO & Director Dara Khosrowshahi for US$5.3m worth of shares, at about US$26.73 per share. That means that an insider was happy to buy shares at above the current price of US$25.36. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Dara Khosrowshahi was the only individual insider to buy during the last year.

In total, Uber Technologies insiders sold more 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insiders At Uber Technologies Have Sold Stock Recently

The last quarter saw substantial insider selling of Uber Technologies shares. In total, Senior Vice President of Marketing & Public Affairs Jill Hazelbaker dumped US$3.5m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Uber Technologies Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.2% of Uber Technologies shares, worth about US$80m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Uber Technologies Insider Transactions Indicate?

An insider hasn't bought Uber Technologies stock in the last three months, but there was some selling. 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'd practice some caution before buying! 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 2 warning signs with Uber Technologies and understanding these should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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