Potential V2X, Inc. (NYSE:VVX) shareholders may wish to note that the President, Jeremy Wensinger, recently bought US$300k worth of stock, paying US$48.00 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

V2X Insider Transactions Over The Last Year

Notably, that recent purchase by Jeremy Wensinger is the biggest insider purchase of V2X shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$48.57. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

While V2X insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

V2X is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does V2X Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.5% of V2X shares, worth about US$38m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The V2X Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest V2X insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with V2X and understanding this should be part of your investment process.

But note: V2X 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.

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