Yahoo Finance Great news for VerticalScope Holdings Inc. (TSE:FORA): Insiders acquired stock in large numbers last year
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of VerticalScope Holdings Inc. (TSE:FORA), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for VerticalScope Holdings
VerticalScope Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Founder Robert Laidlaw bought CA$123k worth of shares at a price of CA$12.28 per share. That means that an insider was happy to buy shares at above the current price of CA$7.35. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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 VerticalScope Holdings insiders were buying shares, but not selling. The average buy price was around CA$15.35. This is nice to see since it implies that insiders might see value around current prices. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At VerticalScope Holdings Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at VerticalScope Holdings. Overall, five insiders shelled out CA$242k for shares in the company -- and none sold. This makes one think the business has some good points.
Does VerticalScope Holdings 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. Our data isn't picking up on much insider ownership at VerticalScope Holdings, though insiders do hold about CA$1.2m worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
So What Do The VerticalScope Holdings Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that VerticalScope Holdings insiders are expecting a bright future. 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. For example - VerticalScope Holdings has 2 warning signs we think you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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