Whilst it may not be a huge deal, we thought it was good to see that the Vinyl Group Ltd (ASX:VNL) CEO & Executive Director, Joshua Simons, recently bought AU$132k worth of stock, for AU$0.098 per share. Although the purchase is not a big one, increasing their shareholding by only 5.9%, it can be interpreted as a good sign.

See our latest analysis for Vinyl Group

Vinyl Group Insider Transactions Over The Last Year

In fact, the recent purchase by Joshua Simons was the biggest purchase of Vinyl Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of AU$0.10. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Vinyl Group share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 3.11m shares worth AU$232k. But they sold 377.16k shares for AU$58k. In total, Vinyl Group insiders bought more than they sold over the last year. They paid about AU$0.075 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Vinyl Group

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Vinyl Group insiders own about AU$18m worth of shares. That equates to 18% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Vinyl Group Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Vinyl Group 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 help with this, we've discovered 5 warning signs (4 shouldn't be ignored!) that you ought to be aware of before buying any shares in Vinyl Group.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.

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