Insider Stock Buying Reaches UK£3.31m On Vistry Group

Quite a few insiders have dramatically grown their holdings in Vistry Group PLC (LON:VTY) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Vistry Group Insider Transactions Over The Last Year

In fact, the recent purchase by CEO & Executive Chairman Gregory Fitzgerald was not their only acquisition of Vistry Group shares this year. They previously made an even bigger purchase of UK£2.0m worth of shares at a price of UK£7.38 per share. That means that even when the share price was higher than UK£6.16 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid UK£3.3m for 476.37k shares. But they sold 3.73k shares for UK£20k. In total, Vistry Group insiders bought more than they sold over the last year. 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!

See our latest analysis for Vistry Group

Vistry Group 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.

Insiders At Vistry Group Have Bought Stock Recently

Over the last quarter, Vistry Group insiders have spent a meaningful amount on shares. We can see that CEO & Executive Chairman Gregory Fitzgerald paid UK£496k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.

Does Vistry Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Vistry Group insiders own 0.3% of the company, worth about UK£6.2m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Vistry Group Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Vistry Group insiders are expecting a bright future. 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. For example - Vistry Group has 2 warning signs we think you should be aware of.

Of course Vistry Group 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.