Viva Energy Group Limited (ASX:VEA) insiders miss last week's 4.5% gain after selling stock over the past year

While Viva Energy Group Limited (ASX:VEA) shareholders have enjoyed a good week with stock up 4.5%, they need remain vigilant. Even though stock prices were relatively low, insiders elected to sell AU$547k worth of stock in the last year, which could indicate some expected downturn.

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.

View our latest analysis for Viva Energy Group

Viva Energy Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO, MD & Executive Director, Scott Wyatt, sold AU$547k worth of shares at a price of AU$2.74 per share. That means that an insider was selling shares at slightly below the current price (AU$3.22). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 2.4% of Scott Wyatt's stake. The only individual insider seller over the last year was Scott Wyatt.

Over the last year, we can see that insiders have bought 35.90k shares worth AU$96k. But insiders sold 200.00k shares worth AU$547k. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Viva Energy Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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 appears that Viva Energy Group insiders own 0.6% of the company, worth about AU$32m. 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 Does This Data Suggest About Viva Energy Group Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Viva Energy Group insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Viva Energy Group. At Simply Wall St, we've found that Viva Energy Group has 2 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.