Are Insiders Selling Vishay Precision Group, Inc. (NYSE:VPG) Stock?

By
Simply Wall St
Published
March 04, 2019
NYSE:VPG

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Vishay Precision Group, Inc. (NYSE:VPG).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'

View our latest analysis for Vishay Precision Group

The Last 12 Months Of Insider Transactions At Vishay Precision Group

In the last twelve months, the biggest single sale by an insider was when CEO, President & Director Ziv Shoshani sold US$950k worth of shares at a price of US$44.90 per share. That is hardly a positive sign, even though it took place above the latest price (US$34.95). So it may not tell us anything about how insiders feel about the current share price.

We note that in the last year insiders divested 74.00k shares for a total of US$3.0m. Over the last year we saw more insider selling of Vishay Precision Group shares, than buying. The sellers received a price of around US$40.18, on average. It's not particularly great to see insiders were selling shares around current prices (shares recently traded around US$34.95). Since insiders sell for many reasons, we wouldn't put too much weight on it. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:VPG Recent Insider Trading, March 4th 2019
NYSE:VPG Recent Insider Trading, March 4th 2019

If you are like me, then you will not want to miss this freelist of growing companies that insiders are buying.

Insider Ownership of Vishay Precision Group

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. Insiders own 8.1% of Vishay Precision Group shares, worth about US$38m. 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 Vishay Precision Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Vishay Precision Group shares in the last quarter. We don't take much encouragement from the transactions by Vishay Precision Group insiders. But we do like the fact that insiders own a fair chunk of the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this freereport showing analyst forecasts for its future.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this freelist of interesting companies, that have HIGH return on equity and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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