Even if it's not a huge purchase, we think it was good to see that Terry Earley, the Executive VP & CFO of Veritex Holdings, Inc. (NASDAQ:VBTX) recently shelled out US$90k to buy stock, at US$17.94 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 12%.
The Last 12 Months Of Insider Transactions At Veritex Holdings
Independent Director Patrick Bolin made the biggest insider purchase in the last 12 months. That single transaction was for US$484k worth of shares at a price of US$25.82 each. That means that even when the share price was higher than US$16.13 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 42.47k shares for US$1.1m. But they sold 16800 shares for US$421k. In total, Veritex Holdings insiders bought more than they sold over the last year. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Veritex Holdings Boast High Insider Ownership?
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Veritex Holdings insiders own 3.8% of the company, worth about US$31m. 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 Veritex Holdings Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Veritex Holdings we think they are probably pretty confident of 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. At Simply Wall St, we've found that Veritex Holdings has 4 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.
Of course Veritex Holdings 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.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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.
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