Potential VersaBank (TSE:VB) shareholders may wish to note that the President, David Taylor, recently bought CA$255k worth of stock, paying CA$12.73 for each share. Although the purchase only increased their holding by 1.9%, it is still a solid purchase in our view.
VersaBank Insider Transactions Over The Last Year
Notably, that recent purchase by President David Taylor was not the only time they bought VersaBank shares this year. Earlier in the year, they paid CA$11.55 per share in a CA$310k purchase. We do like to see buying, but this purchase was made at well below the current price of CA$13.96. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 124.45k shares worth CA$1.4m. But they sold 700.00 shares for CA$7.9k. In the last twelve months there was more buying than selling by VersaBank insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
VersaBank 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.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. VersaBank insiders own about CA$43m worth of shares. That equates to 11% 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 Does This Data Suggest About VersaBank Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest VersaBank insiders are well aligned, and that they may think the share price is too low. 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 - VersaBank has 1 warning sign we think you should be aware of.
Of course VersaBank 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.
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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