Videndum Insiders May Regret Not Buying More, Market Cap Hits UK£100m
Videndum Plc (LON:VID) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 11%, resulting in a UK£9.9m rise in the company's market capitalisation, translating to a gain of 11% on their initial investment. As a result, the stock they originally bought for UK£84.0k is now worth UK£93.2k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Videndum Insider Transactions Over The Last Year
Notably, that recent purchase by Jan Tewes is the biggest insider purchase of Videndum shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of UK£2.49. 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. The good news for Videndum share holders is that an insider was buying at near the current price. Jan Tewes was the only individual insider to buy during the last year.
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!
View our latest analysis for Videndum
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?
Many investors like to check how much of a company is owned by 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. Our information indicates that Videndum insiders own about UK£419k worth of shares. We might be missing something but that seems like very low insider ownership.
So What Does This Data Suggest About Videndum Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Videndum stock. 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. Every company has risks, and we've spotted 3 warning signs for Videndum (of which 2 shouldn't be ignored!) you should know about.
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.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.