By selling US$3.2m worth of Golden Entertainment, Inc. (NASDAQ:GDEN) stock at an average sell price of US$53.54 over the last year, insiders seemed to have made the most of their holdings. The company’s market worth decreased by US$80m over the past week after the stock price dropped 6.3%, although insiders were able to minimize their losses
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Golden Entertainment
In the last twelve months, the biggest single sale by an insider was when the Executive VP & COO, Stephen Arcana, sold US$1.8m worth of shares at a price of US$54.83 per share. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$41.11. So it is hard to draw any strong conclusion from it.
In the last year Golden Entertainment insiders didn’t buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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: insiders have been buying them).
Insider Ownership Of Golden Entertainment
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 5.4% of Golden Entertainment shares, worth about US$64m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Golden Entertainment Insiders?
The fact that there have been no Golden Entertainment insider transactions recently certainly doesn’t bother us. Still, the insider transactions at Golden Entertainment in the last 12 months are not very heartening. But it’s good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. For example, Golden Entertainment has 2 warning signs (and 1 which can’t be ignored) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.