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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Victory Capital Holdings, Inc. (NASDAQ:VCTR), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
The Last 12 Months Of Insider Transactions At Victory Capital Holdings
Over the last year, we can see that the biggest insider purchase was by Independent Director James Hawkes for US$64k worth of shares, at about US$12.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$16.06. 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.
James Hawkes bought a total of 10300 shares over the year at an average price of US$10.45. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Victory Capital Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Victory Capital Holdings insiders own about US$86m worth of shares. That equates to 7.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Victory Capital Holdings Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Victory Capital Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Victory Capital Holdings and we see no evidence to suggest they are worried about the future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Victory Capital Holdings.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.