Positive Signs As Multiple Insiders Buy SkyCity Entertainment Group Stock

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of SkyCity Entertainment Group Limited (NZSE:SKC), it sends a favourable message to the company’s shareholders.

Although we don’t think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for SkyCity Entertainment Group

SkyCity Entertainment Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, David Christian, sold NZ$310k worth of shares at a price of NZ$1.61 per share. So we know that an insider sold shares at around the present share price of NZ$1.57. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign. David Christian was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 227.00k shares for NZ$506k. On the other hand they divested 194.40k shares, for NZ$310k. Overall, SkyCity Entertainment Group insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insiders At SkyCity Entertainment Group Have Sold Stock Recently

Over the last three months, we’ve seen significant insider selling at SkyCity Entertainment Group. In total, insider David Christian sold NZ$310k worth of shares in that time, and we didn’t record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does SkyCity Entertainment Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own NZ$2.7m worth of SkyCity Entertainment Group stock, about 0.2% of the company. But they may have an indirect interest through a corporate structure that we haven’t picked up on. We consider this fairly low insider ownership.

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So What Does This Data Suggest About SkyCity Entertainment Group Insiders?

An insider sold stock recently, but they haven’t been buying. On the other hand, the insider transactions over the last year are encouraging. But we’d like it if insiders owned more stock, overall. So overall it’s hard to argue insiders are bullish. While it’s good to be aware of what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, SkyCity Entertainment Group has 4 warning signs (and 1 which can’t be ignored) we think you should know about.

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.