Insiders who purchased Victrex plc (LON:VCT) shares in the past 12 months are unlikely to be deeply impacted by the stock's 3.5% decline over the past week. After taking the recent loss into consideration, the UK£103k worth of stock they bought is now worth UK£108k, indicating that their investment yielded a positive return.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Victrex Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Director Jakob Sigurdsson bought UK£53k worth of shares at a price of UK£18.93 per share. That means that an insider was happy to buy shares at above the current price of UK£18.61. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Victrex insiders were buying shares, but not selling. 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!
Victrex is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Victrex Have Bought Stock Recently
It's good to see that Victrex insiders have made notable investments in the company's shares. CEO & Executive Director Jakob Sigurdsson spent UK£49k on stock, and there wasn't any selling. That shows some optimism about the company's future.
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Victrex insiders own 0.06% of the company, worth about UK£987k. We consider this fairly low insider ownership.
What Might The Insider Transactions At Victrex Tell Us?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Victrex insiders bought more shares in the company. 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. Case in point: We've spotted 1 warning sign for Victrex you should be aware of.
But note: Victrex may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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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