Those following along with VersaBank (TSE:VBNK) will no doubt be intrigued by the recent purchase of shares by David Taylor, President of the company, who spent a stonking CA$701k on stock at an average price of CA$12.10. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 4.6%.

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VersaBank Insider Transactions Over The Last Year

In fact, the recent purchase by David Taylor was the biggest purchase of VersaBank shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of CA$13.00 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the VersaBank insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 101.29k shares for CA$1.4m. On the other hand they divested 64.19k shares, for CA$1.4m. Overall, VersaBank insiders were net buyers during the last year. 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!

View our latest analysis for VersaBank

VersaBank is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does VersaBank 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. A high insider ownership often makes company leadership more mindful of shareholder interests. VersaBank insiders own about CA$45m worth of shares. That equates to 11% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At VersaBank Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in VersaBank shares, given these transactions (along with notable insider ownership of the company). While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of VersaBank.

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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.