Yahoo Finance Bullish insiders bet UK£765k on Victorian Plumbing Group plc (LON:VIC)
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Victorian Plumbing Group plc's (LON:VIC) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Victorian Plumbing Group
Victorian Plumbing Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Mark Radcliffe bought UK£400k worth of shares at a price of UK£0.40 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£0.81), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid UK£765k for 1.72m shares. On the other hand they divested 210.00k shares, for UK£113k. Overall, Victorian Plumbing Group insiders were net buyers during the last year. Their average price was about UK£0.44. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Victorian Plumbing Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Victorian Plumbing Group Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Victorian Plumbing Group insiders own 61% of the company, currently worth about UK£161m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Victorian Plumbing Group Insider Transactions Indicate?
The fact that there have been no Victorian Plumbing Group insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Victorian Plumbing Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Victorian Plumbing Group. In terms of investment risks, we've identified 1 warning sign with Victorian Plumbing Group and understanding this should be part of your investment process.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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.
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