Notable Wheels Up Experience Insider Makes $754.00 Thousand Buy

David J Adelman, Director at Wheels Up Experience UP, made a large insider buy on September 1, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Adelman purchased 100,000 shares of Wheels Up Experience at a price of $7.54 per share. The total transaction amounted to $754,000.

Following the transaction, Adelman now owns 1,171,851 shares of the company, worth $9,614,803.

Wheels Up Experience shares are trading up 6.01% at $8.2 at the time of this writing on Friday morning.

The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investment decision, however, an insider transaction can be an important factor in the investment decision.

In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sales, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Important Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.

To get more information on previous transactions, check out the insider's net worth page.