Yahoo Finance Insiders Give Up US$230k As Vestis Stock Drops To US$10.16
The recent 46% drop in Vestis Corporation's (NYSE:VSTS) stock could come as a blow to insiders who purchased US$487.8k worth of stock at an average buy price of US$19.23 over the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$257.8k, which is not great.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Vestis
The Last 12 Months Of Insider Transactions At Vestis
Over the last year, we can see that the biggest insider purchase was by President Kimberly Scott for US$287k worth of shares, at about US$19.15 per share. That means that an insider was happy to buy shares at above the current price of US$10.16. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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 Vestis insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Vestis is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Vestis Insiders Bought Stock Recently
Over the last quarter, Vestis insiders have spent a meaningful amount on shares. President Kimberly Scott spent US$287k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.
Insider Ownership Of Vestis
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. From our data, it seems that Vestis insiders own 0.2% of the company, worth about US$5.5m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Vestis Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Vestis insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Vestis has 3 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.
But note: Vestis 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
