Insider Buying: The Veracyte, Inc. (NASDAQ:VCYT) CEO & Director Just Bought 60% More Shares
Those following along with Veracyte, Inc. (NASDAQ:VCYT) will no doubt be intrigued by the recent purchase of shares by Marc Stapley, CEO & Director of the company, who spent a stonking US$980k on stock at an average price of US$16.33. That increased their holding by a full 60%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
See our latest analysis for Veracyte
Veracyte Insider Transactions Over The Last Year
Notably, that recent purchase by Marc Stapley is the biggest insider purchase of Veracyte shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$16.20. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Marc Stapley.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Veracyte is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Veracyte
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 0.8% of Veracyte shares, worth about US$8.7m, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Veracyte Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Veracyte insiders are expecting a bright future. 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. Case in point: We've spotted 3 warning signs for Veracyte you should be aware of.
Of course Veracyte 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.
