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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Victrex plc's (LON:VCT) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Victrex
Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Jakob Sigurdsson for UK£98k worth of shares, at about UK£10.90 per share. That means that an insider was happy to buy shares at above the current price of UK£8.84. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Victrex insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Victrex
Victrex is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Victrex insiders have about 0.1% of the stock, worth approximately UK£856k. I generally like to see higher levels of ownership.
So What Do The Victrex Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Victrex insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Victrex. Our analysis shows 3 warning signs for Victrex (1 is a bit concerning!) and we strongly recommend you look at these before investing.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.