Trade Alert: The Independent Director Of Village Bank and Trust Financial Corp. (NASDAQ:VBFC), Frank Jenkins, Has Just Spent US$62k Buying 75% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Village Bank and Trust Financial Corp. (NASDAQ:VBFC) Independent Director, Frank Jenkins, recently bought US$62k worth of stock, for US$31.00 per share. Even though that isn't a massive buy, it did increase their holding by 75%, which is arguably a good sign.

See our latest analysis for Village Bank and Trust Financial

Village Bank and Trust Financial Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Kenneth Lehman for US$293k worth of shares, at about US$38.20 per share. That means that even when the share price was higher than US$33.00 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Village Bank and Trust Financial insiders may have bought shares in the last year, but they didn't sell any. They paid about US$33.79 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Village Bank and Trust Financial

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Village Bank and Trust Financial insiders own about US$30m worth of shares (which is 61% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Village Bank and Trust Financial Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Village Bank and Trust Financial insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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. At Simply Wall St, we've found that Village Bank and Trust Financial has 2 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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