Yahoo Finance Bullish VersaBank Insiders Loaded Up On CA$1.67m Of Stock
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.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for VersaBank
VersaBank Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive Vice President Telemaco Matrundola for CA$500k worth of shares, at about CA$14.54 per share. That implies that an insider found the current price of CA$14.80 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for VersaBank share holders is that insiders were buying at near the current price. We note that Telemaco Matrundola was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 120.61k shares for CA$1.7m. On the other hand they divested 37.60k shares, for CA$513k. In total, VersaBank insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
VersaBank Insiders Bought Stock Recently
We saw some VersaBank insider buying shares in the last three months. Insiders shelled out CA$27k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership Of VersaBank
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 13% of VersaBank shares, worth about CA$51m. 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?
Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in VersaBank and their transactions don't cause us concern. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for VersaBank.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
