Trade Alert: The Chief Executive of Vista Entertainment Solutions - Los Angeles Of Vista Group International Limited (NZSE:VGL), Leon Newnham, Has Just Spent NZ$403k Buying 44% More Shares

Investors who take an interest in Vista Group International Limited (NZSE:VGL) should definitely note that the Chief Executive of Vista Entertainment Solutions - Los Angeles, Leon Newnham, recently paid NZ$1.77 per share to buy NZ$403k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 44%.

View our latest analysis for Vista Group International

The Last 12 Months Of Insider Transactions At Vista Group International

In fact, the recent purchase by Leon Newnham was the biggest purchase of Vista Group International shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of NZ$1.69. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid NZ$3.5m for 3.15m shares. On the other hand they divested 29.49k shares, for NZ$53k. In the last twelve months there was more buying than selling by Vista Group International insiders. The average buy price was around NZ$1.10. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Vista Group International 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 Vista Group International

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Vista Group International insiders own about NZ$41m worth of shares. That equates to 11% of the company. 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 Does This Data Suggest About Vista Group International Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Vista Group International we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vista Group International. You'd be interested to know, that we found 1 warning sign for Vista Group International and we suggest you have a look.

Of course Vista Group International 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, 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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