Trade Alert: The Non-Executive Director Of ValiRx plc (LON:VAL), Martin Lampshire, Has Just Spent UK£100k Buying A Few More Shares

Investors who take an interest in ValiRx plc (LON:VAL) should definitely note that the Non-Executive Director, Martin Lampshire, recently paid UK£0.23 per share to buy UK£100k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for ValiRx

The Last 12 Months Of Insider Transactions At ValiRx

Notably, that recent purchase by Martin Lampshire is the biggest insider purchase of ValiRx shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of UK£0.24. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for ValiRx share holders is that insiders were buying at near the current price.

While ValiRx insiders bought shares during the last year, they didn't sell. They paid about UK£0.20 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. 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 growing companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 8.5% of ValiRx shares, worth about UK£1.3m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The ValiRx Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that ValiRx insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ValiRx. To that end, you should learn about the 4 warning signs we've spotted with ValiRx (including 1 which is significant).

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, 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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