One United Natural Foods, Inc. (NYSE:UNFI) insider upped their stake in the previous year

Insiders were net buyers of United Natural Foods, Inc.'s (NYSE:UNFI ) stock during the past year. That is, insiders bought more stock than 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 United Natural Foods

United Natural Foods Insider Transactions Over The Last Year

In fact, the recent sale by Richard Esper was the biggest sale of United Natural Foods shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$38.81, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 42%of Richard Esper's holding.

Richard Esper divested 7.23k shares over the last 12 months at an average price of US$39.26. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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 United Natural Foods Have Sold Stock Recently

There was substantially more insider selling, than buying, of United Natural Foods shares over the last three months. In that time, Chief Accounting Officer & Controller Richard Esper dumped US$200k worth of shares. On the flip side, CEO & Director James Alexander Douglas spent US$100k on purchasing shares. Generally this level of net selling might be considered a bit bearish.

Insider Ownership

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. We usually like to see fairly high levels of insider ownership. It appears that United Natural Foods insiders own 1.8% of the company, worth about US$42m. 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 United Natural Foods Insiders?

The insider sales have outweighed the insider buying, at United Natural Foods, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since United Natural Foods is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. 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. To help with this, we've discovered 3 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in United Natural Foods.

Of course United Natural Foods may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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