Notable Utz Brands Insider Trades $2.7M In Company Stock

Chinh Chu, Insider at Utz Brands UTZ, made a large buy and sell of company shares on November 11, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission states that Chinh Chu purchased 232,000 Utz Brands shares at a price of $11.50 per share for a total of $2,668,000 on November 11. They then sold their shares on the same day in the open market. They sold at a price of $18.00 to raise a total of $18,360 from the stock sale.

Following the transaction, Chu still owns 5,242,130 shares of the company, worth $86,940,726.

Utz Brands shares are trading down 2.78% at $16.59 at the time of this writing on Tuesday morning.

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Why Insider Transactions Are Important

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

Check Out The Full List Of Utz Brands's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.