Yahoo Finance Insider Buying: The Vista Group International Limited (NZSE:VGL) Chief Executive of Vista Entertainment Solutions - Los Angeles Just Bought 44% More Shares
Potential Vista Group International Limited (NZSE:VGL) shareholders may wish to note that the Chief Executive of Vista Entertainment Solutions - Los Angeles, Leon Newnham, recently bought NZ$403k worth of stock, paying NZ$1.77 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 44%.
Check out our latest analysis for Vista Group International
Vista Group International Insider Transactions Over The Last Year
In fact, the recent purchase by Leon Newnham was the biggest purchase of Vista Group International shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of NZ$1.69. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid NZ$3.5m for 3.15m shares. But they sold 29.49k shares for NZ$53k. Overall, Vista Group International insiders were net buyers during the last year. The average buy price was around NZ$1.10. To my mind it is good 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. 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Vista Group International Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Vista Group International insiders own 11% of the company, worth about NZ$41m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Vista Group International Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Vista Group International shares, given these transactions (along with notable insider ownership of the company). While we like knowing 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. In terms of investment risks, we've identified 1 warning sign with Vista Group International and understanding this should be part of your investment process.
Of course Vista Group International may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
This article by Simply Wall St is general in nature. 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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