Stock Analysis

Have VerticalScope Holdings Inc. (TSE:FORA) Insiders Been Selling Their Stock?

Source: Shutterstock

Anyone interested in VerticalScope Holdings Inc. (TSE:FORA) should probably be aware that the Founder, Robert Laidlaw, recently divested CA$161k worth of shares in the company, at an average price of CA$7.09 each. The eyebrow raising move amounted to a reduction of 21% in their holding.

See our latest analysis for VerticalScope Holdings

VerticalScope Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Founder Robert Laidlaw was not their only trade of VerticalScope Holdings shares this year. Earlier in the year, they spent CA$512k to buy shares at CA$5.25 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$6.09. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 131.28k shares worth CA$891k. But they sold 22.70k shares for CA$161k. In total, VerticalScope Holdings insiders bought more than they sold over the last year. The average buy price was around CA$6.78. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

TSX:FORA Insider Trading Volume March 18th 2023

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of VerticalScope Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 17% of VerticalScope Holdings shares, worth about CA$22m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The VerticalScope Holdings Insider Transactions Indicate?

An insider hasn't bought VerticalScope Holdings stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. It's good to see insiders are shareholders. So we're not overly bothered by recent selling. 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 4 warning signs with VerticalScope Holdings and understanding these should be part of your investment process.

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.

Valuation is complex, but we're helping make it simple.

Find out whether VerticalScope Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis