VerticalScope Holdings Insiders Up US$882k On US$1.35m Investment

Insiders who bought VerticalScope Holdings Inc. (TSE:FORA) stock lover the last 12 months are probably not as affected by last week’s 16% loss. Reason being, despite the recent loss, insiders original purchase value of US$1.35m is now worth US$2.23m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for VerticalScope Holdings

The Last 12 Months Of Insider Transactions At VerticalScope Holdings

In the last twelve months, the biggest single purchase by an insider was when Founder Robert Laidlaw bought CA$910k worth of shares at a price of CA$4.73 per share. We do like to see buying, but this purchase was made at well below the current price of CA$7.01. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 317.95k shares for CA$1.3m. But insiders sold 71.67k shares worth CA$339k. Overall, VerticalScope Holdings insiders were net buyers during the last year. Their average price was about CA$4.24. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, VerticalScope Holdings insiders have about 2.8% of the stock, worth approximately CA$4.3m. We consider this fairly low insider ownership.

What Might The Insider Transactions At VerticalScope Holdings Tell Us?

It doesn't really mean much that no insider has traded VerticalScope Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more VerticalScope Holdings stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with VerticalScope Holdings and understanding it should be part of your investment process.

But note: VerticalScope Holdings 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.