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Insiders were net buyers of Valaris Limited's (NYSE:VAL ) stock during the past year. That is, insiders bought more stock than they sold.
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.
See our latest analysis for Valaris
Valaris Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider John Fredriksen bought US$33m worth of shares at a price of US$60.93 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$51.93). 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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was John Fredriksen.
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!
Valaris 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.
Valaris Insiders Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Valaris. In total, insider John Fredriksen bought US$33m worth of shares in that time. But insiders only sold shares worth US$4.0m. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Does Valaris Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Valaris insiders own 8.8% of the company, worth about US$323m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Valaris Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Valaris. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 2 warning signs for Valaris and we suggest you have a look.