Have Insiders Sold Viva Energy Group Shares Recently?

We wouldn't blame Viva Energy Group Limited (ASX:VEA) shareholders if they were a little worried about the fact that Scott Wyatt, the CEO, MD & Executive Director recently netted about AU$1.3m selling shares at an average price of AU$3.00. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.1%.

View our latest analysis for Viva Energy Group

Viva Energy Group Insider Transactions Over The Last Year

In fact, the recent sale by CEO, MD & Executive Director Scott Wyatt was not their only sale of Viva Energy Group shares this year. They previously made an even bigger sale of -AU$1.5m worth of shares at a price of AU$3.05 per share. That means that an insider was selling shares at around the current price of AU$3.02. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last twelve months insiders purchased 66.80k shares for AU$204k. But they sold 925.00k shares for AU$2.8m. Scott Wyatt ditched 925.00k shares over the year. The average price per share was AU$3.03. 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!

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Does Viva Energy Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.6% of Viva Energy Group shares, worth about AU$28m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Viva Energy Group Insider Transactions Indicate?

The stark truth for Viva Energy Group is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for Viva Energy Group (1 is a bit unpleasant!) that we believe deserve your full attention.

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 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.