NASDAQ:VIRT) shareholders (or potential shareholders) will be happy to see that the CEO & Director, Douglas Cifu, recently bought a whopping US$2.2m worth of stock, at a price of US$22.45. That purchase boosted their holding by 52%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.” data-reactid=”28″>Virtu Financial, Inc. (NASDAQ:VIRT) shareholders (or potential shareholders) will be happy to see that the CEO & Director, Douglas Cifu, recently bought a whopping US$2.2m worth of stock, at a price of US$22.45. That purchase boosted their holding by 52%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
View our latest analysis for Virtu Financial ” data-reactid=”29″>View our latest analysis for Virtu Financial
Virtu Financial Insider Transactions Over The Last Year
Notably, that recent purchase by Douglas Cifu is the biggest insider purchase of Virtu Financial shares that we’ve seen in the last year. That implies that an insider found the current price of US$24.64 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. In this case we’re pleased to report that the insider bought shares at close to current prices. Douglas Cifu was the only individual insider to buy shares in the last twelve months.
Douglas Cifu bought 130.00k shares over the last 12 months at an average price of US$21.20. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
list of growing companies that insiders are buying.” data-reactid=”49″>There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 0.5% of Virtu Financial shares, worth about US$22m. 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 Virtu Financial Insider Transactions Indicate?
3 warning signs we’ve spotted with Virtu Financial (including 1 which is a bit unpleasant).” data-reactid=”53″>It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Virtu Financial insiders are well aligned, and that they may think the share price is too low. 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. To that end, you should learn about the 3 warning signs we’ve spotted with Virtu Financial (including 1 which is a bit unpleasant).
list of interesting companies with high ROE and low debt.” data-reactid=”54″>But note: Virtu Financial 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.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”56″>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. 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.