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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Vinyl Group Ltd (ASX:VNL), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Vinyl Group
The Last 12 Months Of Insider Transactions At Vinyl Group
In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Director Joshua Simons bought AU$132k worth of shares at a price of AU$0.098 per share. That means that an insider was happy to buy shares at around the current price of AU$0.099. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Vinyl Group share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders paid AU$217k for 2.11m shares. But insiders sold 377.16k shares worth AU$58k. In total, Vinyl Group insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Vinyl Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Vinyl Group Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Vinyl Group. CEO & Executive Director Joshua Simons bought AU$35k worth of shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership Of Vinyl Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data indicates that Vinyl Group insiders own about AU$8.3m worth of shares (which is 6.6% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.