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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 Vanquis Banking Group plc (LON:VANQ), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Vanquis Banking Group
Vanquis Banking Group Insider Transactions Over The Last Year
The Independent Non-Executive Chairman Peter Estlin made the biggest insider purchase in the last 12 months. That single transaction was for UK£109k worth of shares at a price of UK£0.55 each. That means that even when the share price was higher than UK£0.52 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. 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.
While Vanquis Banking Group insiders bought shares during the last year, they didn't sell. 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!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our information indicates that Vanquis Banking Group insiders own about UK£304k worth of shares. This level of insider ownership is notably low, and not very encouraging.
So What Do The Vanquis Banking Group Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Vanquis Banking Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Vanquis Banking Group insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vanquis Banking Group. At Simply Wall St, we found 1 warning sign for Vanquis Banking Group that deserve your attention before buying any shares.