Insider Buyers Lose UK£29k As Vanquis Banking Group Sheds UK£19m

The recent price decline of 14% in Vanquis Banking Group plc's (LON:VANQ) stock may have disappointed insiders who bought UK£186.3k worth of shares at an average price of UK£0.55 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth UK£157.2k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Vanquis Banking Group

Vanquis Banking Group Insider Transactions Over The Last Year

The Independent Non-Executive Chairman Peter Estlin made the biggest insider purchase in the last 12 months. That single transaction was for UK£109k worth of shares at a price of UK£0.55 each. That means that even when the share price was higher than UK£0.46 (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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Vanquis Banking Group 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 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 undervalued small cap companies that insiders are buying.

Insider Ownership Of Vanquis Banking Group

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. Our information indicates that Vanquis Banking Group insiders own about UK£257k worth of shares. However, it's possible that insiders might have an indirect interest through a more complex structure. This level of insider ownership is notably low, and not very encouraging.

What Might The Insider Transactions At Vanquis Banking Group Tell Us?

The fact that there have been no Vanquis Banking Group insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Vanquis Banking Group insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vanquis Banking Group. Every company has risks, and we've spotted 1 warning sign for Vanquis Banking Group you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.