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Looking at Videndum Plc's (LON:VID ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Videndum
Videndum Insider Transactions Over The Last Year
The Executive Chairman Stephen Harris made the biggest insider purchase in the last 12 months. That single transaction was for UK£50k worth of shares at a price of UK£2.38 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£1.42). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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. Stephen Harris was the only individual insider to buy shares in the last twelve months.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Videndum is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Videndum Boast High 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. From looking at our data, insiders own UK£1.3m worth of Videndum stock, about 1.0% of the company. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Videndum Insiders?
The fact that there have been no Videndum insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Videndum insiders are doubting the company. 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. While conducting our analysis, we found that Videndum has 1 warning sign and it would be unwise to ignore it.