VersaBank Insider Buyers See Boost After Market Cap Rose CA$43m

Last week, VersaBank (TSE:VBNK) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 15% last week, resulting in a CA$43m increase in the company's market worth, implying a 28% gain on their initial purchase. Put another way, the original CA$996.4k acquisition is now worth CA$1.28m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for VersaBank

The Last 12 Months Of Insider Transactions At VersaBank

The President David Taylor made the biggest insider purchase in the last 12 months. That single transaction was for CA$152k worth of shares at a price of CA$10.15 each. Even though the purchase was made at a significantly lower price than the recent price (CA$12.78), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months VersaBank insiders were buying shares, but not selling. 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!

VersaBank is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Are VersaBank Insiders Buying Or Selling?

We saw some VersaBank insider buying shares in the last three months. Independent Director Gabrielle Bochynek shelled out CA$11k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership Of VersaBank

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 13% of VersaBank shares, worth about CA$40m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About VersaBank Insiders?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in VersaBank and their transactions don't cause us concern. Of course, the future is what matters most. So if you are interested in VersaBank, you should check out this free report on analyst forecasts for the company.

But note: VersaBank 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 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.