It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Veritex Holdings, Inc. (NASDAQ:VBTX), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. 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.’
Veritex Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when William Murphy sold US$973k worth of shares at a price of US$29.20 per share. So we know that an insider sold shares at around the present share price of US$26.29. They could have a variety of motivations for selling, but it’s still not particularly encouraging to see. Arguably, insider selling at around current prices should give us reason to reflect on whether the stock is fully valued at the moment. William Murphy was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 9.41k shares worth US$140k. But they sold 33.31k for US$973k. You can see a visual depiction of insider transactions (by 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!
Veritex Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Veritex Holdings Insiders Bought Stock Recently
Over the last quarter, Veritex Holdings insiders have spent a meaningful amount on shares. Overall, 2 insiders shelled out US$65k for shares in the company — and none sold. This makes one think the business has some good points.
Does Veritex Holdings Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Veritex Holdings insiders own 3.2% of the company, worth about US$45m. 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 Do The Veritex Holdings Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn’t so positive. We don’t take much heart from transactions by Veritex Holdings insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Veritex 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.
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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.