Insiders Who Sold Veru Missed Out On 11% Stock Increase

Last week, Veru Inc.'s (NASDAQ:VERU) stock jumped 11%, but insiders who sold US$334k worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$1.38, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

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.

See our latest analysis for Veru

The Last 12 Months Of Insider Transactions At Veru

In the last twelve months, the biggest single sale by an insider was when the Chairman, Mitchell Steiner, sold US$247k worth of shares at a price of US$1.50 per share. 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$0.89. So it may not tell us anything about how insiders feel about the current share price. Mitchell Steiner was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 15.71k shares worth US$22k. But they sold 242.06k shares for US$334k. Mitchell Steiner divested 242.06k shares over the last 12 months at an average price of US$1.38. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Veru better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Veru

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. Insiders own 11% of Veru shares, worth about US$14m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Veru Insider Transactions Indicate?

The fact that there have been no Veru insider transactions recently certainly doesn't bother us. Our analysis of Veru insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. While it's good to be aware of 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. To that end, you should learn about the 4 warning signs we've spotted with Veru (including 3 which are potentially serious).

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.