How Much Are Virgin Money UK PLC (LON:VMUK) Insiders Taking Off The Table?

By
Simply Wall St
Published
August 01, 2021
LSE:VMUK
Source: Shutterstock

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Virgin Money UK PLC (LON:VMUK).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for Virgin Money UK

Virgin Money UK Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Gavin Rodney Opperman, sold UK£193k worth of shares at a price of UK£1.93 per share. That means that even when the share price was below the current price of UK£2.00, 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. This single sale was just 42% of Gavin Rodney Opperman's stake.

Over the last year, we can see that insiders have bought 198.37k shares worth UK£276k. But insiders sold 165.00k shares worth UK£304k. In total, Virgin Money UK insiders sold more than they bought over the last year. They sold for an average price of about UK£1.84. It's not particularly great to see insiders were selling shares at below recent prices. But we wouldn't put too much weight on the insider selling. 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!

insider-trading-volume
LSE:VMUK Insider Trading Volume August 1st 2021

I will like Virgin Money UK better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Virgin Money UK

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Virgin Money UK insiders own 0.2% of the company, worth about UK£5.7m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

So What Do The Virgin Money UK Insider Transactions Indicate?

The fact that there have been no Virgin Money UK insider transactions recently certainly doesn't bother us. Our analysis of Virgin Money UK insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Virgin Money UK.

Of course Virgin Money UK may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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This article by Simply Wall St is general in nature. 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.
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