46% Of This Vector Group Insider's Holdings Were Sold

Looking at Vector Group Ltd.'s (NYSE:VGR ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Vector Group

Vector Group Insider Transactions Over The Last Year

The Independent Chairman of the Board, Bennett LeBow, made the biggest insider sale in the last 12 months. That single transaction was for US$2.1m worth of shares at a price of US$12.93 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$10.61). So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Bennett LeBow.

Happily, we note that in the last year insiders paid US$206k for 20.00k shares. But they sold 331.05k shares for US$4.1m. Bennett LeBow ditched 331.05k shares over the year. The average price per share was US$12.24. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Vector Group Boast High Insider Ownership?

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. Vector Group insiders own 14% of the company, currently worth about US$242m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Vector Group Insider Transactions Indicate?

The fact that there have been no Vector Group insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Vector Group, we can't say the same about the selling of shares. 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. For example, Vector Group has 3 warning signs (and 2 which make us uncomfortable) we think you should know about.

But note: Vector Group 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 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.