Bullish Victorian Plumbing Group Insiders Loaded Up On UK£410k Of Stock
Over the last year, a good number of insiders have significantly increased their holdings in Victorian Plumbing Group plc (LON:VIC). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
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.
Check out our latest analysis for Victorian Plumbing Group
The Last 12 Months Of Insider Transactions At Victorian Plumbing Group
The CEO & Director Mark Radcliffe made the biggest insider purchase in the last 12 months. That single transaction was for UK£400k worth of shares at a price of UK£0.40 each. Even though the purchase was made at a significantly lower price than the recent price (UK£0.80), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 1.02m shares for UK£410k. But they sold 185.00k shares for UK£132k. Overall, Victorian Plumbing Group insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Victorian Plumbing Group 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.
Insiders At Victorian Plumbing Group Have Sold Stock Recently
Over the last three months, we've seen significant insider selling at Victorian Plumbing Group. Specifically, Independent Chairman Philip Bowcock ditched UK£132k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership Of Victorian Plumbing Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Victorian Plumbing Group insiders own 63% of the company, worth about UK£165m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Victorian Plumbing Group Tell Us?
An insider sold stock recently, but they haven't been buying. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So we're not too bothered by recent selling. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Victorian Plumbing Group has 1 warning sign we think you should be aware of.
Of course Victorian Plumbing Group 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.
