Stock Analysis

As Vista Group International Limited's (NZSE:VGL)) market cap dropped by NZ$51m, insiders who sold NZ$1.4m worth of stock were able to offset their losses

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Over the past year, insiders sold NZ$1.4m worth of Vista Group International Limited (NZSE:VGL) stock at an average price of NZ$2.44 per share allowing them to get the most out of their money. The company's market worth decreased by NZ$51m over the past week after the stock price dropped 11%, although insiders were able to minimize their losses

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Vista Group International

The Last 12 Months Of Insider Transactions At Vista Group International

The insider, William Palmer, made the biggest insider sale in the last 12 months. That single transaction was for NZ$1.4m worth of shares at a price of NZ$2.44 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of NZ$1.86. So it may not shed much light on insider confidence at current levels.

Over the last year we saw more insider selling of Vista Group International shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NZSE:VGL Insider Trading Volume February 24th 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Vista Group International

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. We usually like to see fairly high levels of insider ownership. It appears that Vista Group International insiders own 9.2% of the company, worth about NZ$42m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Vista Group International Tell Us?

It doesn't really mean much that no insider has traded Vista Group International shares in the last quarter. We don't take much encouragement from the transactions by Vista Group International insiders. The modest level of insider ownership is, at least, some comfort. While we like knowing 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. Case in point: We've spotted 1 warning sign for Vista Group International you should be aware of.

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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