Independent Director John Sughrue Just Bought 5.3% More Shares In Veritex Holdings, Inc. (NASDAQ:VBTX)

By
Simply Wall St
Published
May 08, 2022
NasdaqGM:VBTX
Source: Shutterstock

Investors who take an interest in Veritex Holdings, Inc. (NASDAQ:VBTX) should definitely note that the Independent Director, John Sughrue, recently paid US$33.52 per share to buy US$134k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.3%.

View our latest analysis for Veritex Holdings

The Last 12 Months Of Insider Transactions At Veritex Holdings

The Independent Director, Manuel Mehos, made the biggest insider sale in the last 12 months. That single transaction was for US$3.1m worth of shares at a price of US$41.18 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$33.00. So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$2.2m for 60.13k shares. But they sold 101.98k shares for US$4.1m. All up, insiders sold more shares in Veritex Holdings than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqGM:VBTX Insider Trading Volume May 8th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Veritex Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 3.5% of Veritex Holdings shares, worth about US$62m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Veritex Holdings Insiders?

It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn't so positive. While recent transactions indicate confidence in Veritex Holdings, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. So they seem pretty well aligned, overall. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Veritex Holdings. Case in point: We've spotted 3 warning signs for Veritex Holdings you should be aware of.

But note: Veritex Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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