In This Article:
Multiple insiders secured a larger position in Valaris Limited (NYSE:VAL) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
We've discovered 1 warning sign about Valaris. View them for free.
Valaris Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider John Fredriksen for US$37m worth of shares, at about US$46.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$30.10). 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 if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 2.12m shares for US$106m. But they sold 75.40k shares for US$4.2m. In the last twelve months there was more buying than selling by Valaris insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Valaris
Valaris 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 Valaris Have Bought Stock Recently
It's good to see that Valaris insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$37m for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Valaris insiders own about US$241m worth of shares (which is 11% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.