We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Veritex Holdings, Inc. (NASDAQ:VBTX), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
The Last 12 Months Of Insider Transactions At Veritex Holdings
The , William Murphy, made the biggest insider sale in the last 12 months. That single transaction was for US$973k worth of shares at a price of US$29.20 each. So we know that an insider sold shares at around the present share price of US$25.91. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. William Murphy was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 28101 shares worth US$730k. On the other hand they divested 33314 shares, for US$973k. You can see a visual depiction of insider transactions (by 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!
I will like Veritex Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insiders at Veritex Holdings Have Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Veritex Holdings. In total, insiders bought US$730k worth of shares in that time, and we didn’t record any sales whatsoever. This makes one think the business has some good points.
Does Veritex Holdings Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Veritex Holdings insiders own 3.2% of the company, worth about US$45m. 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 Veritex Holdings Insiders?
It’s certainly positive to see the recent insider purchases. However, the longer term transactions are not so encouraging. 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. Overall they seem reasonably aligned. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Veritex Holdings.
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.
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