We wouldn't blame Virtu Financial, Inc. (NYSE:VIRT) shareholders if they were a little worried about the fact that Brett Fairclough, the Co-President & Co-COO recently netted about US$1.5m selling shares at an average price of US$50.06. That sale reduced their total holding by 41% which is hardly insignificant, but far from the worst we've seen.

Virtu Financial Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Co-President & Co-COO, Joseph Molluso, sold US$7.8m worth of shares at a price of US$38.88 per share. That means that an insider was selling shares at slightly below the current price (US$51.31). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 38% of Joseph Molluso's holding.

Virtu Financial insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Virtu Financial Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.7% of Virtu Financial shares, worth about US$52m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Virtu Financial Tell Us?

Insiders haven't bought Virtu Financial stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Virtu Financial makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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 Virtu Financial.

Of course Virtu Financial may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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.