Robert Laidlaw Bought 15% More Shares In VerticalScope Holdings

Investors who take an interest in VerticalScope Holdings Inc. (TSE:FORA) should definitely note that the Founder, Robert Laidlaw, recently paid CA$4.90 per share to buy CA$300k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 15%.

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The Last 12 Months Of Insider Transactions At VerticalScope Holdings

Notably, that recent purchase by Founder Robert Laidlaw was not the only time they traded VerticalScope Holdings shares this year. They previously made a sale of -CA$973k worth of shares at a price of CA$10.06 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$4.85. So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 93.74k shares for CA$564k. But they sold 335.00k shares for CA$3.4m. In total, VerticalScope Holdings insiders sold more than they bought over the last year. The sellers received a price of around US$10.00, on average. It is certainly not great to see that insiders have sold shares in the company. However, we do note that the average sale price was significantly higher than the current share price (which is CA$4.85). 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!

See our latest analysis for VerticalScope Holdings

I will like VerticalScope Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, VerticalScope Holdings insiders have about 3.1% of the stock, worth approximately CA$3.2m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

What Might The Insider Transactions At VerticalScope Holdings Tell Us?

Unfortunately, there has been more insider selling of VerticalScope Holdings stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We'd certainly practice some caution before buying! While it's good to be aware of 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. You'd be interested to know, that we found 1 warning sign for VerticalScope Holdings and we suggest you have a look.

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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.