Lead Independent Trustee Robert McCadden Just Bought 50% More Shares In Universal Health Realty Income Trust (NYSE:UHT)

Investors who take an interest in Universal Health Realty Income Trust (NYSE:UHT) should definitely note that the Lead Independent Trustee, Robert McCadden, recently paid US$47.87 per share to buy US$120k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 50%.

See our latest analysis for Universal Health Realty Income Trust

The Last 12 Months Of Insider Transactions At Universal Health Realty Income Trust

In the last twelve months, the biggest single purchase by an insider was when Independent Trustee Michael Domb bought US$326k worth of shares at a price of US$56.25 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$48.87). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Universal Health Realty Income Trust insiders may have bought shares in the last year, but they didn't sell any. 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 of Universal Health Realty Income Trust

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. Universal Health Realty Income Trust insiders own about US$12m worth of shares. That equates to 1.8% of the company. 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 Does This Data Suggest About Universal Health Realty Income Trust Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Universal Health Realty Income Trust shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 2 warning signs we've spotted with Universal Health Realty Income Trust (including 1 which is significant).

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.