A number of insiders bought Virginia National Bankshares Corporation (NASDAQ:VABK) stock last year, which is great news for shareholders

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Virginia National Bankshares Corporation's (NASDAQ:VABK) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Virginia National Bankshares

The Last 12 Months Of Insider Transactions At Virginia National Bankshares

In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board William Dittmar bought US$59k worth of shares at a price of US$37.00 per share. That means that even when the share price was higher than US$31.55 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Virginia National Bankshares insiders bought shares during the last year, they didn't sell. 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!

Virginia National Bankshares is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Virginia National Bankshares Have Bought Stock Recently

Over the last quarter, Virginia National Bankshares insiders have spent a meaningful amount on shares. Overall, four insiders shelled out US$122k for shares in the company -- and none sold. That shows some optimism about the company's future.

Insider Ownership Of Virginia National Bankshares

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Virginia National Bankshares insiders own about US$21m worth of shares. That equates to 13% 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 Virginia National Bankshares Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Virginia National Bankshares insiders are well aligned, and that they may think the share price is too low. While we like knowing 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. Case in point: We've spotted 1 warning sign for Virginia National Bankshares you should be aware of.

But note: Virginia National Bankshares 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, but not derivative transactions.

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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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