Virtu Financial, Inc. (NASDAQ:VIRT) shareholders (or potential shareholders) will be happy to see that the CEO & Director, Douglas Cifu, recently bought a whopping US$2.2m worth of stock, at a price of US$22.45. That increased their holding by a full 52%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
Virtu Financial Insider Transactions Over The Last Year
Notably, that recent purchase by Douglas Cifu is the biggest insider purchase of Virtu Financial shares that we’ve seen in the last year. That implies that an insider found the current price of US$24.64 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Virtu Financial insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Douglas Cifu.
Douglas Cifu bought 130.00k shares over the last 12 months at an average price of US$21.20. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Virtu Financial Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Virtu Financial insiders own 0.5% of the company, worth about US$22m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Virtu Financial Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Virtu Financial we think they are probably pretty confident of a bright future. 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. At Simply Wall St, we’ve found that Virtu Financial has 3 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.
But note: Virtu Financial 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. 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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