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Volex plc (LON:VLX) shareholders (or potential shareholders) will be happy to see that the Executive Chairman, Nathaniel Philip Victor Rothschild, recently bought a whopping UK£825k worth of stock, at a price of UK£1.65. While that only increased their holding size by 1.3%, it is still a big swing by our standards.
See our latest analysis for Volex
The Last 12 Months Of Insider Transactions At Volex
In fact, the recent purchase by Nathaniel Philip Victor Rothschild was the biggest purchase of Volex shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of UK£1.76 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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 Volex insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders paid UK£1.6m for 1.15m shares. On the other hand they divested 139.21k shares, for UK£206k. In the last twelve months there was more buying than selling by Volex insiders. The average buy price was around UK£1.37. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!
Volex is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Volex Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Volex insiders own about UK£70m worth of shares. That equates to 26% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Volex Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Volex shares, given these transactions (along with notable insider ownership of the company). 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. At Simply Wall St, we found 3 warning signs for Volex that deserve your attention before buying any shares.