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.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Victrex

Victrex Insider Transactions Over The Last Year

The CEO & Executive Director Jakob Sigurdsson made the biggest insider purchase in the last 12 months. That single transaction was for UK￡98k worth of shares at a price of UK￡10.90 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK￡8.86). 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.

While Victrex insiders bought shares during the last year, they didn't sell. The average buy price was around UK￡12.23. This is nice to see since it implies that insiders might see value around current prices. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At Victrex Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Victrex. Specifically, CEO & Executive Director Jakob Sigurdsson bought UK￡119k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership Of Victrex

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data isn't picking up on much insider ownership at Victrex, though insiders do hold about UK￡670k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

What Might The Insider Transactions At Victrex Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Victrex 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. Every company has risks, and we've spotted 3 warning signs for Victrex (of which 1 makes us a bit uncomfortable!) you should know about.