Insiders saw their UK£3.2m investment bump up to UK£4.1m after Vistry Group PLC (LON:VTY) soared 3.9% last week

Last week, Vistry Group PLC (LON:VTY) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 3.9% last week, resulting in a UK£100m increase in the company's market worth. Put another way, the original UK£3.2m acquisition is now worth UK£4.1m.

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.

Check out our latest analysis for Vistry Group

The Last 12 Months Of Insider Transactions At Vistry Group

In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Director Gregory Fitzgerald bought UK£2.2m worth of shares at a price of UK£5.54 per share. We do like to see buying, but this purchase was made at well below the current price of UK£7.78. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months Vistry Group insiders were buying shares, but not selling. They paid about UK£6.09 on average. To my mind it is good that insiders have invested their own money 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Vistry Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Vistry Group

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.0% of Vistry Group shares, worth about UK£28m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Vistry Group Insider Transactions Indicate?

The fact that there have been no Vistry Group insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Vistry Group and we see no evidence to suggest they are worried about the future. 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. Be aware that Vistry Group is showing 2 warning signs in our investment analysis, and 1 of those is a bit unpleasant...

But note: Vistry Group 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, but not derivative transactions.

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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.