Trade Alert: MD & Director Of Vita Life Sciences Andrew O'Keefe Has Sold Stock

Some Vita Life Sciences Limited (ASX:VLS) shareholders may be a little concerned to see that the MD & Director, Andrew O'Keefe, recently sold a substantial AU$1.9m worth of stock at a price of AU$2.10 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 61% of their entire holding.

Check out our latest analysis for Vita Life Sciences

The Last 12 Months Of Insider Transactions At Vita Life Sciences

Notably, that recent sale by Andrew O'Keefe is the biggest insider sale of Vita Life Sciences shares that we've seen in the last year. That means that even when the share price was below the current price of AU$2.41, an insider wanted to cash in some shares. 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. We note that the biggest single sale was 61% of Andrew O'Keefe's holding.

Over the last year, we can see that insiders have bought 162.27k shares worth AU$289k. But insiders sold 1.06m shares worth AU$2.2m. In total, Vita Life Sciences insiders sold more than they bought over the last year. 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!

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Does Vita Life Sciences Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Vita Life Sciences insiders own about AU$43m worth of shares. That equates to 31% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Vita Life Sciences Tell Us?

The insider sales have outweighed the insider buying, at Vita Life Sciences, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Vita Life Sciences makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 2 warning signs with Vita Life Sciences and understanding them should be part of your investment process.

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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.