Bullish Virtu Financial Insiders Loaded Up On US$1.0m Of Stock
Over the last year, a good number of insiders have significantly increased their holdings in Virtu Financial, Inc. (NASDAQ:VIRT). 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, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Virtu Financial
The Last 12 Months Of Insider Transactions At Virtu Financial
Over the last year, we can see that the biggest insider sale was by the Co-President & Co-COO, Brett Fairclough, for US$970k worth of shares, at about US$19.39 per share. That means that an insider was selling shares at around the current price of US$18.14. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. The only individual insider seller over the last year was Brett Fairclough.
Over the last year, we can see that insiders have bought 58.00k shares worth US$1.0m. On the other hand they divested 50.00k shares, for US$970k. Overall, Virtu Financial insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Virtu Financial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Virtu Financial Insiders Are Selling The Stock
Over the last three months, we've seen notably more insider selling, than insider buying, at Virtu Financial. In that time, Co-President & Co-COO Brett Fairclough dumped US$970k worth of shares. Meanwhile Co-founder Douglas Cifu bought US$842k worth. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Virtu Financial insiders own 1.4% of the company, worth about US$42m. 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 Does This Data Suggest About Virtu Financial Insiders?
Unfortunately, there has been more insider selling of Virtu Financial stock, than buying, in the last three months. In contrast, they appear keener if you look at the last twelve months. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Virtu Financial you should know about.
Of course Virtu Financial 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.
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