Insiders at Vera Bradley, Inc. (NASDAQ: VRA) sold $ 11 million worth of shares, suggesting looming weakness.
Numerous Vera Bradley, Inc. (NASDAQ: VRA) Insiders have abandoned their shares in the past year, which may be of interest to the company’s shareholders. When evaluating insider trading, it is usually more beneficial to know whether insiders are buying or selling, as the latter can be subject to many interpretations. However, when multiple insiders sell shares over a specific length of time, shareholders should take this into account as this could potentially be a red flag.
While insider trading isn’t the most important thing when it comes to investing for the long term, we think it makes perfect sense to keep tabs on what insiders are doing.
The Last 12 Months of Insider Trading at Vera Bradley
Co-founder Patricia Miller had the biggest insider sale in the past 12 months. This one-time transaction involved shares valued at US $ 3.8 million at a price of US $ 9.00 each. So it’s clear that an insider wanted to take money off the table, even below the current price of US $ 9.58. We generally consider it 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. Please note, however, that sellers can have a variety of reasons for selling, so we are not sure what they think about the stock price. This one-time sale only represented 9.5% of Patricia Miller’s stake.
Over the past year, we’ve seen more insiders selling Vera Bradley shares than buying. The chart below shows insider trading (by businesses and individuals) over the past year. If you want to know exactly who sold, for how much and when, just click on the graph below!
NasdaqGS: VRA Insider Trading Volume October 5, 2021
If you are like me then you not want to miss it free list of growing companies that insiders buy.
Vera Bradley insiders sold shares recently
We have recently seen more insider selling than insider buying at Vera Bradley. Meanwhile, independent director Edward Schmults sold shares for US $ 99,000. Meanwhile, CEO, Chairman and Director Robert Wallstrom bought for US $ 21,000, as we said above. Since selling really trumps buying, we would say these transactions may suggest that some insiders believe the company has been fully valued in recent months.
I like to look at 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 own 25% of Vera Bradley’s shares, worth around $ 80 million. While this is a high but not exceptional level of insider ownership, it is enough to indicate some alignment between management and small shareholders.
What could insider trading at Vera Bradley tell us?
Insider selling has outpaced insider buying at Vera Bradley in the past three months. And our longer-term analysis of insider trading did not provide confidence either. On the bright side, Vera Bradley is making money and increasing her profits. While the insiders own stocks, they don’t own a bunch, and they’ve sold. We practice some caution before buying! In addition to knowing what insider trading is going on, it helps to identify the risks Vera Bradley faces. During our analysis, we found that Vera Bradley has 2 warning signs and it would be unwise to ignore them.
Sure, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.