Trade Alert: The Executive VP Of Vector Group Ltd. (NYSE:VGR), Richard Lampen, Has Just Spent US$182k Buying 3.4% More Shares

Potential Vector Group Ltd. (NYSE:VGR) shareholders may wish to note that the Executive VP, Richard Lampen, recently bought US$182k worth of stock, paying US$12.10 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 3.4%.

See our latest analysis for Vector Group

The Last 12 Months Of Insider Transactions At Vector Group

The Independent Chairman of the Board, Bennett LeBow, made the biggest insider sale in the last 12 months. That single transaction was for US$12m worth of shares at a price of US$11.52 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$12.13. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 21% of Bennett LeBow's holding. The only individual insider seller over the last year was Bennett LeBow.

Happily, we note that in the last year insiders paid US$1.3m for 127.50k shares. On the other hand they divested 2.39m shares, for US$26m. Bennett LeBow sold a total of 2.39m shares over the year at an average price of US$10.83. 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 growing companies that insiders are buying.

Insider Ownership of Vector Group

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's great to see that Vector Group insiders own 15% of the company, worth about US$275m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Vector Group Insiders?

The insider sales have outweighed the insider buying, at Vector Group, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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 6 warning signs (and 1 which can't be ignored) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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. 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.
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