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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Vanquis Banking Group plc's (LON:VANQ) instance, it's good news for 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 Vanquis Banking Group
The Last 12 Months Of Insider Transactions At Vanquis Banking Group
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chairman Peter Estlin for UK£109k worth of shares, at about UK£0.55 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£0.55. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Vanquis Banking Group insiders decided to buy shares at close to current prices.
Vanquis Banking Group insiders may have bought shares in the last year, but they didn't sell any. 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!
Vanquis Banking Group 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
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 isn't picking up on much insider ownership at Vanquis Banking Group, though insiders do hold about UK£324k worth of shares. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We might be missing something but that seems like very low insider ownership.
So What Does This Data Suggest About Vanquis Banking Group Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Vanquis Banking Group stock. While it's good to be aware of 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. For example - Vanquis Banking Group has 1 warning sign we think you should be aware of.