Independent Chairman of the Board Bennett LeBow Sold A Bunch Of Shares In Vector Group

Some Vector Group Ltd. (NYSE:VGR) shareholders may be a little concerned to see that the Independent Chairman of the Board, Bennett LeBow, recently sold a substantial US$2.0m worth of stock at a price of US$11.69 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 88% of their entire holding.

View our latest analysis for Vector Group

Vector Group Insider Transactions Over The Last Year

Notably, that recent sale by Independent Chairman of the Board Bennett LeBow was not the only time they sold Vector Group shares this year. Earlier in the year, they fetched US$11.53 per share in a -US$5.7m sale. So we know that an insider sold shares at around the present share price of US$11.25. While insider selling is a negative, to us, it is more negative if the shares are sold 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.

Happily, we note that in the last year insiders paid US$206k for 20.00k shares. On the other hand they divested 960.53k shares, for US$11m. All up, insiders sold more shares in Vector Group than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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: insiders have been buying them).

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 15% of the company, currently worth about US$259m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Vector Group Insiders?

An insider sold Vector Group shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Vector Group makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. 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 Vector Group.

Of course Vector Group 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.