It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in SkyCity Entertainment Group Limited’s (NZSE:SKC) case, it’s fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for SkyCity Entertainment Group
SkyCity Entertainment Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director David Robert Attenborough bought NZ$229k worth of shares at a price of NZ$2.29 per share. That means that an insider was happy to buy shares at above the current price of NZ$1.92. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. To us, it’s very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While SkyCity Entertainment Group 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. By clicking on the graph below, you can see the precise details of each insider transaction!
SkyCity Entertainment Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At SkyCity Entertainment Group Have Bought Stock Recently
There was some insider buying at SkyCity Entertainment Group over the last quarter. Non Executive Director Kate Hughes shelled out NZ$64k for shares in that time. It’s good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Based on our data, SkyCity Entertainment Group insiders have about 0.3% of the stock, worth approximately NZ$3.7m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At SkyCity Entertainment Group Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on SkyCity Entertainment Group stock. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing SkyCity Entertainment Group. For instance, we’ve identified 3 warning signs for SkyCity Entertainment Group (1 is a bit concerning) you should be aware of.
Of course SkyCity Entertainment Group 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.
