Some Virtus Investment Partners, Inc. (NASDAQ: VRTS) Shareholders may be a little concerned that Executive Vice President and Head of Distribution Barry Mandinach recently sold a substantial US $ 1.5 million for US $ 286 per action. This is a significant divestiture, and it reduced the size of their holding company by 39%, which is notable but not too serious.
See our latest analysis for Virtus Investment Partners
The last 12 months of insider trading at Virtus Investment Partners
Notably, this recent sale by Barry Mandinach is the biggest insider sale of Virtus Investment Partners shares we’ve seen in the past year. This means that even when the share price was slightly lower than the current price of US $ 289, an insider wanted to cash in some shares. We generally consider this to be negative if insiders sold, especially if they did so below the current price, as this implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we cannot be sure that this means that insiders think stocks are fully valued, so it is only a weak sign. We note that the biggest single sale was only 39% of Barry Mandinach’s stake.
Insiders of Virtus Investment Partners have not bought any shares in the past year. You can see insider trading (by companies and individuals) over the past year represented in the graph below. By clicking on the graph below, you can see the exact detail of each insider trade!
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I like to watch how many shares insiders own in a company, to help inform my perspective on their alignment with insiders. We generally like to see fairly high levels of insider ownership. Insiders of Virtus Investment Partners own 5.6% of the company, which is currently worth around US $ 123 million based on the recent share price. This type of large insider ownership generally increases the chances that the business will be run in the best interests of all shareholders.
What might insider trading at Virtus Investment Partners tell us?
Insiders haven’t bought any Virtus Investment Partners shares in the past three months, but there have been some sales. And there haven’t been any purchases to comfort us in the past year. But since Virtus Investment Partners is profitable and growing, we are not too worried about this. The company prides itself on having a high insider participation, but we’re a little hesitant, given the history of share sales. While we love to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. For example – Virtus Investment Partners has 2 warning signs we think you should be aware.
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For the purposes of this article, insiders are those persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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