Yahoo Finance CEO, MD & Director Paul Scurrah Just Bought Shares In Virgin Australia Holdings Limited (ASX:VAH)
Whilst it may not be a huge deal, we thought it was good to see that the Virgin Australia Holdings Limited (ASX:VAH) CEO, MD & Director, Paul Scurrah, recently bought AU$99k worth of stock, for AU$0.10 per share. Even though that isn't a massive buy, it did increase their holding by 81%, which is a arguably a good sign.
See our latest analysis for Virgin Australia Holdings
Virgin Australia Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by CEO, MD & Director Paul Scurrah was not their only acquisition of Virgin Australia Holdings shares this year. They previously made an even bigger purchase of AU$196k worth of shares at a price of AU$0.17 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.075). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Virgin Australia Holdings insiders bought shares last year, they didn't sell. The average buy price was around AU$0.14. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Virgin Australia Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Virgin Australia Holdings Boast High Insider Ownership?
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. From looking at our data, insiders own AU$3.2m worth of Virgin Australia Holdings stock, about 0.5% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Virgin Australia Holdings Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Virgin Australia Holdings insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Virgin Australia Holdings you should know about.
But note: Virgin Australia Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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