Usually it’s not a big deal if a single insider buys shares, but when multiple insiders are buying, as is the case with SkyCity Entertainment Group Limited ( NZSE:SKC ), it sends a positive message to shareholders of the company.
While we don’t believe shareholders should simply keep track of insider transactions, we think it is perfectly logical to keep an eye on insider activity.
View our latest analysis for SkyCity Entertainment Group
Skycity Entertainment Group insider transactions over the past year
In the last 12 months, the biggest insider sale was when insider David Christian sold NZ$310k worth of shares at NZ$1.61 per share. This means that insiders sold their shares at around the current share price of NZ$1.57. We don’t usually like insider selling, but the lower the sale price, the more concerned we become. As this sale took place around the current share price, it’s not a huge concern, but it’s never a good sign. The only insider to sell shares in the last 12 months was David Christian.
In the last 12 months, insiders have bought 227,000 shares for NZ$506,000, while selling 194,400 shares for NZ$310,000. Overall, SkyCity Entertainment Group insiders have been net buyers in the past year. You can see insider transactions (by companies and individuals) over the past year in the graph below: You can click on the graph to see all the individual transactions, including share price, individuals and dates.
Insider Trading Volume
SkyCity Entertainment Group isn’t the only stock that insiders are buying, so take a peek at this free list of under-the-radar companies that insiders are buying.
SkyCity Entertainment Group officials recently sold shares
The last three months have seen some significant insider selling at SkyCity Entertainment Group. Insider David Christian sold a total of NZ$310k worth of shares in the period, but no purchases were recorded. This could indicate that some insiders don’t think the shares are cheap.
Does SkyCity Entertainment Group boast high insider ownership?
I like to see how many shares insiders own in a company. This helps support my view of how aligned they are with insiders. High insider ownership tends to make company management more mindful of shareholder interests. Looking at our data, insiders own NZ$2.7m worth of SkyCity Entertainment Group shares, which represents about 0.2% of the company. However, they may have an indirect interest through corporate structures that we are not aware of. This leads us to believe that insider ownership is low.
The story continues
So what does this data suggest about SkyCity Entertainment Group insiders?
Insiders have sold shares recently, but not bought any. Meanwhile, insider trading over the past year has been strong. But overall, it’s better for insiders to own more shares. So, overall, it’s hard to argue that insiders are bullish. While it’s good to know what’s going on with insider ownership and transactions, you should also consider the risks facing a stock before making any investment decisions. For example, SkyCity Entertainment Group has 4 warning signs (and 1 which can’t be ignored) you should know about.
Of course, SkyCity Entertainment Group may not be the best stock to buy, so we suggest you take a look at this free collection of high quality companies.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. Currently, we count only open market transactions and private dispositions of direct interests, not derivative transactions or indirect interests.
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This article by Simply Wall St is of general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell a stock, and does not take into account your objectives or financial situation. We aim to provide long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned herein.