Virtu Financial Inc., (NASDAQ:VIRT) Co-President and Co-COO Brett Fairclough has sold a big 57% stake in the company.
VIRT stock is down more than -18% this year-to-date and more than -15% in the past trading week.
Brett Fairclough netted about $970k selling shares at an average price of $19.39; the stock is currently trading around $16.
In the last twelve months, the biggest single sale by an insider was when the Executive VP of Markets & Global Head of Execution Services, Stephen Cavoli, sold $2.6m worth of shares at a price of $29.52 per share.
“While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price,” says SimplyWallSt.
Analysts are beginning to take caution with Virtu stock as insider selling has dominated purchasing of the stock.
“Our longer term analysis of insider transactions didn’t bring confidence, either.
Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d practice some caution before buying!”
The latest data shows Virtu Financial insiders sold more than they bought over the last year.
Latest Virtu Financial News
Market maker Virtu is currently facing new enforcement action by the Securities and Exchange Commission (SEC).
(WSJ) The firm disclosed last week that it is facing a potential enforcement lawsuit from the Securities and Exchange Commission.
Virtu disclosed in a quarterly filing after Friday’s closing bell that it had engaged in settlement discussions with the SEC about an investigation related to “information barriers policies and procedures” between January 2018 and April 2019.
The company first disclosed the probe in February. Its updated disclosure suggested that the SEC could be moving forward with a lawsuit.
Virtu said it “currently believes it may receive a Wells notice from the SEC,” referring to a type of letter that the agency’s staffers send to companies or individuals to inform them of a possible enforcement action.
A Virtu spokesman said the investigation was “primarily focused on an access controls weakness in one of our internal back office systems containing post trade information that theoretically could allow certain system users access greater than what was intended by our policies.”
“We have no reason to believe and have found no evidence that anyone ever made any improper use of any client information”, said Virtu.
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