We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Ten Entertainment Group plc (), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia Universityfound that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Ten Entertainment Group Insider Transactions Over The Last Year
The Interim Executive Chairman Nicholas Basing made the biggest insider purchase in the last 12 months. That single transaction was for UK£81k worth of shares at a price of UK£1.55 each. We do like to see buying, but this purchase was made at well below the current price of UK£2.35. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 149.90k shares worth UK£232k. But they sold 42.21k shares for UK£69k. Overall, Ten Entertainment Group insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free
Does Ten Entertainment Group 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Ten Entertainment Group insiders own 2.0% of the company, worth about UK£3.2m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Ten Entertainment Group Tell Us?
It doesn’t really mean much that no insider has traded Ten Entertainment Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it’d be more encouraging if Ten Entertainment Group insiders bought more shares in the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Ten Entertainment Group. When we did our research, we found(1 is concerning!) that we believe deserve your full attention.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free
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.
This article by Simply Wall St is general in nature. 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.
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