Insiders might want to re-evaluate their US$3.0m stock purchase as V.F. Corporation (NYSE:VFC) drops to US$7.9b

Insiders who bought US$3.0m worth of V.F. Corporation's (NYSE:VFC) stock at an average buy price of US$33.15 over the last year may be disappointed by the recent 4.4% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$1.9m which is not ideal.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for V.F

The Last 12 Months Of Insider Transactions At V.F

The Independent Director Mark Hoplamazian made the biggest insider purchase in the last 12 months. That single transaction was for US$491k worth of shares at a price of US$28.04 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$20.44). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. 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 US$3.0m for 90.61k shares. But insiders sold 677.00 shares worth US$34k. In total, V.F insiders bought more than they sold over the last year. Their average price was about US$33.15. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

V.F is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

V.F Insiders Bought Stock Recently

Over the last quarter, V.F insiders have spent a meaningful amount on shares. In total, insiders bought US$550k 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 V.F Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that V.F insiders own 0.4% of the company, worth about US$31m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The V.F Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in V.F shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 4 warning signs (2 are significant!) that you ought to be aware of before buying any shares in V.F.

But note: V.F 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.