Even if it’s not a huge purchase, we think it was good to see that Philip Raff, the Commercial Manager & Executive Director of Velocity Property Group Limited (ASX:VP7) recently shelled out AU$148k to buy stock, at AU$0.029 per share. While we’re hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 16%.
The Last 12 Months Of Insider Transactions At Velocity Property Group
The CEO, MD & Executive Director, Brendon Ansell, made the biggest insider sale in the last 12 months. That single transaction was for AU$860k worth of shares at a price of AU$0.02 each. So it’s clear an insider wanted to take some cash off the table, even below the current price of AU$0.035. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. This single sale was just 50% of Brendon Ansell’s stake. Brendon Ansell was the only individual insider to sell over the last year.
You can see the insider transactions (by 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Velocity Property Group Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It’s great to see that Velocity Property Group insiders own 47% of the company, worth about AU$6.5m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Velocity Property Group Tell Us?
Unfortunately, there has been more insider selling of Velocity Property Group stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For instance, we’ve identified 5 warning signs for Velocity Property Group (4 are potentially serious) you should be aware of.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned.
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