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Even if it's not a huge purchase, we think it was good to see that Philippe Hamers, the CEO & Executive Director of Victoria PLC (LON:VCP) recently shelled out UK£42k to buy stock, at UK£2.03 per share. Although the purchase is not a big one, increasing their shareholding by only 9.0%, it can be interpreted as a good sign.
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The Last 12 Months Of Insider Transactions At Victoria
In fact, the recent purchase by Philippe Hamers was the biggest purchase of Victoria shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of UK£2.19. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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 Victoria share holders is that an insider was buying at near the current price. Philippe Hamers was the only individual insider to buy shares in the last twelve months.
Philippe Hamers bought a total of 30.44k shares over the year at an average price of UK£2.06. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Victoria is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 20% of Victoria shares, worth about UK£50m. 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 Does This Data Suggest About Victoria Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Victoria 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Victoria.