The Co-President & Co-COO of Virtu Financial, Inc. (NASDAQ:VIRT), Brett Fairclough, Just Sold 57% Of Their Holding

We wouldn't blame Virtu Financial, Inc. (NASDAQ:VIRT) shareholders if they were a little worried about the fact that Brett Fairclough, the Co-President & Co-COO recently netted about US$970k selling shares at an average price of US$19.39. Probably the most concerning element of the whole transaction is that the disposal amounted to 57% of their entire holding.

See our latest analysis for Virtu Financial

Virtu Financial Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive VP of Markets & Global Head of Execution Services, Stephen Cavoli, sold US$2.6m worth of shares at a price of US$29.52 per share. While insider selling is a negative, to us, it is more negative if the shares are sold 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$19.00. So it may not shed much light on insider confidence at current levels.

In total, Virtu Financial insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Virtu Financial

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Virtu Financial insiders own 1.4% of the company, worth about US$44m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Virtu Financial Tell Us?

An insider sold Virtu Financial shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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. In terms of investment risks, we've identified 1 warning sign with Virtu Financial and understanding it should be part of your investment process.

But note: Virtu Financial 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.