Have Veru Insiders Been Selling Stock?

Anyone interested in Veru Inc. (NASDAQ:VERU) should probably be aware that the Chairman, Mitchell Steiner, recently divested US$247k worth of shares in the company, at an average price of US$1.44 each. However, the silver lining is that the sale only reduced their total holding by 2.3%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Veru

The Last 12 Months Of Insider Transactions At Veru

In fact, the recent sale by Mitchell Steiner was the biggest sale of Veru shares made by an insider individual in the last twelve months, according to our records. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$1.27. So it may not shed much light on insider confidence at current levels.

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: Most of them are flying under the radar).

Does Veru Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Veru insiders own 11% of the company, worth about US$21m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Veru Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Veru, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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, Veru has 6 warning signs (and 3 which can't be ignored) we think you should know about.

Of course Veru 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.