This Insider Has Just Sold Shares In Vital Energy

Anyone interested in Vital Energy, Inc. (NYSE:VTLE) should probably be aware that the Executive VP & CFO, Bryan Lemmerman, recently divested US$285k worth of shares in the company, at an average price of US$28.54 each. The eyebrow raising move amounted to a reduction of 11% in their holding.

View our latest analysis for Vital Energy

Vital Energy Insider Transactions Over The Last Year

Notably, that recent sale by Bryan Lemmerman is the biggest insider sale of Vital Energy shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$26.37. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Over the last year, we can see that insiders have bought 3.50k shares worth US$140k. But insiders sold 17.17k shares worth US$502k. All up, insiders sold more shares in Vital Energy than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Vital Energy Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Vital Energy insiders own 23% of the company, worth about US$220m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Vital Energy Tell Us?

Unfortunately, there has been more insider selling of Vital Energy stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 5 warning signs we've spotted with Vital Energy (including 1 which makes us a bit uncomfortable).

Of course Vital Energy 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.

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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.