Anyone interested in Vector Group Ltd. (NYSE:VGR) should probably be aware that the Director, Ronald Bernstein, recently divested US$105k worth of shares in the company, at an average price of US$10.55 each. That sale was 16% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Vector Group

Vector Group Insider Transactions Over The Last Year

The Independent Chairman of the Board, Bennett LeBow, made the biggest insider sale in the last 12 months. That single transaction was for US$5.9m worth of shares at a price of US$12.25 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$10.75. So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 8.42k shares for US$88k. But they sold 530.00k shares for US$6.3m. In total, Vector Group insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Vector Group 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's great to see that Vector Group insiders own 15% of the company, worth about US$248m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Vector Group Insiders?

An insider hasn't bought Vector Group stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 5 warning signs for Vector Group (2 are a bit unpleasant!) that we believe deserve your full attention.

But note: Vector Group 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.

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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.