Yahoo Finance Bullish insiders bet CA$1.6m on VersaBank (TSE:VBNK)
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in VersaBank's (TSE:VBNK) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for VersaBank
The Last 12 Months Of Insider Transactions At VersaBank
Over the last year, we can see that the biggest insider purchase was by President David Taylor for CA$255k worth of shares, at about CA$12.73 per share. That means that an insider was happy to buy shares at above the current price of CA$10.49. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 110.81k shares for CA$1.6m. But insiders sold 6.00 shares worth CA$88.0. In total, VersaBank insiders bought more than they sold over the last year. Their average price was about CA$14.30. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
VersaBank is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
VersaBank Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at VersaBank. Not only was there no selling that we can see, but they collectively bought CA$100k worth of shares. That shows some optimism about the company's future.
Insider Ownership of VersaBank
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that VersaBank insiders own 12% of the company, worth about CA$34m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The VersaBank Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest VersaBank insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 3 warning signs we've spotted with VersaBank (including 1 which shouldn't be ignored).
Of course VersaBank 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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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.
