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VersaBank Insiders Added CA$1.5m Of Stock To Their Holdings

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of VersaBank (TSE:VBNK), that sends out a positive message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for VersaBank

The Last 12 Months Of Insider Transactions At VersaBank

Over the last year, we can see that the biggest insider purchase was by President David Taylor for CA$429k worth of shares, at about CA$10.25 per share. So it's clear an insider wanted to buy, at around the current price, which is CA$11.00. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for VersaBank share holders is that insiders were buying at near the current price. We note that David Taylor was both the biggest buyer and the biggest seller.

In the last twelve months insiders purchased 154.35k shares for CA$1.5m. But they sold 1.00k shares for CA$10k. Overall, VersaBank insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

VersaBank is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

VersaBank Insiders Bought Stock Recently

It's good to see that VersaBank insiders have made notable investments in the company's shares. In total, insiders bought CA$210k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that VersaBank insiders own 13% of the company, worth about CA$37m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The VersaBank Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of VersaBank we think they are probably pretty confident of a bright future. 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. While conducting our analysis, we found that VersaBank has 1 warning sign and it would be unwise to ignore it.

But note: VersaBank may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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