Stock Analysis

The Director of vTv Therapeutics Inc. (NASDAQ:VTVT), Richard Nelson, Just Bought A Few More Shares

NasdaqCM:VTVT
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Potential vTv Therapeutics Inc. (NASDAQ:VTVT) shareholders may wish to note that the Director, Richard Nelson, recently bought US$172k worth of stock, paying US$2.86 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for vTv Therapeutics

The Last 12 Months Of Insider Transactions At vTv Therapeutics

Notably, that recent purchase by Richard Nelson is the biggest insider purchase of vTv Therapeutics shares that we've seen in the last year. That means that even when the share price was higher than US$2.35 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While vTv Therapeutics insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqCM:VTVT Insider Trading Volume March 3rd 2021

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of vTv Therapeutics

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data isn't picking up on much insider ownership at vTv Therapeutics, though insiders do hold about US$385k worth of shares. We might be missing something but that seems like very low insider ownership.

So What Do The vTv Therapeutics Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on vTv Therapeutics stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing vTv Therapeutics. Be aware that vTv Therapeutics is showing 3 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

But note: vTv Therapeutics may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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