Yahoo Finance The President of VersaBank (TSE:VBNK), David Taylor, Just Bought 3.7% More Shares
Potential VersaBank (TSE:VBNK) shareholders may wish to note that the President, David Taylor, recently bought CA$429k worth of stock, paying CA$10.20 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 3.7%.
See our latest analysis for VersaBank
VersaBank Insider Transactions Over The Last Year
Notably, that recent purchase by David Taylor is the biggest insider purchase of VersaBank shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$10.10). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably David Taylor was also the biggest seller.
Happily, we note that in the last year insiders paid CA$1.5m for 122.82k shares. But insiders sold 1.01k shares worth CA$10k. In the last twelve months there was more buying than selling by VersaBank insiders. The average buy price was around CA$11.93. These transactions suggest that insiders have considered the current price attractive. 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!
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.
Does VersaBank Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. VersaBank insiders own about CA$33m worth of shares. That equates to 12% of the company. 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 Does This Data Suggest About VersaBank Insiders?
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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing VersaBank. Every company has risks, and we've spotted 1 warning sign for VersaBank you should know about.
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, but not derivative transactions.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
