Several insiders got a bigger position in plc victorian plumbing group (LON: VIC) shares over the past 12 months. This is reassuring as it suggests insiders have heightened optimism about the company’s prospects.
While we would never suggest that investors base their decisions solely on what a company’s directors have done, we would consider it foolish to ignore insider trading altogether.
The last 12 months of insider trading at Victorian Plumbing Group
CEO and Director Mark Radcliffe has made the biggest insider buy in the past 12 months. This single transaction involved £2.9 million worth of shares at a price of £0.97 each. This means that an insider was happy to buy shares above the current price of UK£0.39. Although their perspective has changed since the purchase, it at least suggests that they have confidence in the future of the company. We always take careful note of the price paid by insiders when buying stocks. Generally speaking, it comes to our attention when insiders have bought stocks at higher prices than they are now, because it suggests that they thought the stock was worth buying, even at a higher price.
Over the past year, we can see that insiders bought 4.31m shares worth £3.8m. On the other hand, they sold 210,000 shares, for 113,000 British pounds. Overall, Victorian Plumbing Group insiders have been net buyers over the past year. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!
Victorian Plumbing Group isn’t the only stock insiders are buying. So take a look at this free list of growing companies with insider buying.
Victorian Plumbing Group insiders are selling the stock
The last quarter saw significant insider selling of shares of Victorian Plumbing Group. In total, insiders sold £113,000 worth of shares during this period, and we recorded no purchases. In light of this, it’s hard to say that all insiders think stocks are a good deal.
Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the company for the long term. Insiders of the Victorian Plumbing Group own around £81m of shares (or 64% of the company). This type of significant insider ownership generally increases the chances that the company will be run in the best interests of all shareholders.
So what does this data suggest about Victorian Plumbing Group insiders?
Insiders have been selling stocks recently, but they haven’t been buying. But we look forward to past transactions. On top of that, insiders own a significant share of the business. So we’re not too bothered by recent sales. So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. During our analysis, we discovered that Victorian Plumbing Group had 3 warning signs and it would be unwise to ignore them.
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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