Stock Analysis

Have Insiders Sold Vertex, Inc. (NASDAQ:VERX) Shares Recently?

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We wouldn't blame Vertex, Inc. (NASDAQ:VERX) shareholders if they were a little worried about the fact that Jeffrey Westphal, a company insider, recently netted about US$21m selling shares at an average price of US$17.62. That's a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Vertex

Notably, that recent sale by insider Jeffrey Westphal was not the only time they sold Vertex shares this year. Earlier in the year, they fetched US$7.35 per share in a -US$37m sale. That means that an insider was selling shares at slightly below the current price (US$18.48). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 28% of Jeffrey Westphal's stake.

In the last year Vertex insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqGM:VERX Insider Trading Volume March 18th 2023

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Vertex Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Vertex insiders own 66% of the company, currently worth about US$1.8b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Vertex Insider Transactions Indicate?

Insiders sold Vertex shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vertex. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Vertex.

Of course Vertex 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, but not derivative transactions.

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