Videndum Chairman Acquires 19% More Stock

Even if it's not a huge purchase, we think it was good to see that Stephen Harris, the Chairman of Videndum Plc (LON:VID) recently shelled out UK£50k to buy stock, at UK£2.38 per share. That purchase might not be huge but it did increase their holding by 19%.

See our latest analysis for Videndum

Videndum Insider Transactions Over The Last Year

Notably, that recent purchase by Chairman Stephen Harris was not the only time they bought Videndum shares this year. Earlier in the year, they paid UK£2.67 per share in a UK£300k purchase. That means that even when the share price was higher than UK£2.50 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Videndum insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Videndum is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Videndum

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own UK£2.2m worth of Videndum stock, about 0.9% of the company. We consider this fairly low insider ownership.

What Might The Insider Transactions At Videndum Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Videndum insiders bought more shares in the company. 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. Every company has risks, and we've spotted 2 warning signs for Videndum (of which 1 shouldn't be ignored!) you should know about.

But note: Videndum 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.