Trade Alert: Co-President & Co-COO Of Virtu Financial Brett Fairclough Has Sold Stock

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$2.7m selling shares at an average price of US$36.84. That's a big disposal, and it decreased their holding size by 45%, which is notable but not too bad.

View our latest analysis for Virtu Financial

Virtu Financial Insider Transactions Over The Last Year

Notably, that recent sale by Brett Fairclough is the biggest insider sale of Virtu Financial shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$36.77. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last year Virtu Financial insiders didn't buy any company stock. 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!

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

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Virtu Financial insiders own about US$89m worth of shares. That equates to 1.6% of the company. 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 Virtu Financial Insiders?

An insider hasn't bought Virtu Financial stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that Virtu Financial is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Virtu Financial. For example - Virtu Financial has 1 warning sign we think you should be aware of.

Of course Virtu Financial may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.

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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.