We wouldn't blame Virtu Financial, Inc. (NYSE:VIRT) shareholders if they were a little worried about the fact that John Nixon, the Independent Director recently netted about US$547k selling shares at an average price of US$60.13. That sale reduced their total holding by 23% which is hardly insignificant, but far from the worst we've seen.

Virtu Financial Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Co-President & Co-COO, Joseph Molluso, for US$7.8m worth of shares, at about US$38.88 per share. That means that even when the share price was below the current price of US$67.93, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 38% of Joseph Molluso's stake.

Insiders in Virtu Financial didn't buy any shares in 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!

I will like Virtu Financial better if I see some big insider buys.

Insider Ownership Of Virtu Financial

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.7% of Virtu Financial shares, worth about US$71m. 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 Virtu Financial Insider Transactions Indicate?

Insiders haven't bought Virtu Financial stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Virtu Financial makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. 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.

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.

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.