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Insiders Who Bought Veritiv Corporation (NYSE:VRTV) Stock in the Last 12 Months Recover Some Losses, but Still Down US$21k

Simply Wall St ·  {{timeTz}}

Insiders who bought US$392k worth of Veritiv Corporation (NYSE:VRTV) stock in the last year have seen some of their losses recouped as the stock gained 4.2% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at US$21k since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Veritiv

The Last 12 Months Of Insider Transactions At Veritiv

Over the last year, we can see that the biggest insider purchase was by Independent Chairman Stephen Macadam for US$202k worth of shares, at about US$127 per share. That means that even when the share price was higher than US$120 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Stephen Macadam was the only individual insider to buy shares in the last twelve months.

Stephen Macadam bought a total of 3.10k shares over the year at an average price of US$127. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volumeNYSE:VRTV Insider Trading Volume September 10th 2022

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Veritiv Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Veritiv insiders own about US$91m worth of shares. That equates to 5.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Veritiv Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Veritiv shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Veritiv and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Veritiv. To help with this, we've discovered 2 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in Veritiv.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

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