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Investors who take an interest in V.F. Corporation (NYSE:VFC) should definitely note that the Independent Director, Richard Carucci, recently paid US$41.44 per share to buy US$414k worth of the stock. Although the purchase only increased their holding by 9.7%, it is still a solid purchase in our view.
See our latest analysis for V.F
V.F Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Director Richard Carucci was not the only time they bought V.F shares this year. Earlier in the year, they paid US$45.39 per share in a US$454k purchase. That means that even when the share price was higher than US$41.45 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. 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.
Happily, we note that in the last year insiders paid US$1.8m for 38.00k shares. But insiders sold 677.00 shares worth US$34k. In the last twelve months there was more buying than selling by V.F insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. V.F insiders own about US$51m worth of shares. That equates to 0.3% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About V.F Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of V.F we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 2 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in V.F.