We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Veru Inc. (NASDAQ:VERU).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Veru Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Gary Barnette bought US$146k worth of shares at a price of US$1.51 per share. That means that even when the share price was higher, an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. That purchase may suggest an expectation of positive returns over the long term.
In the last twelve months insiders paid US$620k for 375.20k shares purchased. Overall, Veru insiders were net buyers last year. They paid about US$1.65 on average. These transactions suggest that insiders have considered the current price of US$1.34 attractive. The chart below shows insider transactions over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Veru is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Veru Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Veru. Not only was there no selling that we can see, but they collectively bought US$189k worth of shares. This could be interpreted as suggesting a positive outlook.
Insider Ownership of Veru
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. Veru insiders own about US$25m worth of shares (which is 28% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Veru Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Veru insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in Veru, you should check out this free report on analyst forecasts for the company.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.