We wouldn’t blame MGM Resorts International (NYSE:MGM) shareholders if they were a little worried about the fact that James Murren, the Chairman & CEO recently netted about US$22m selling shares at an average price of US$32.16. That’s a big dump, and it decreased their holding size by 45%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At MGM Resorts International
Notably, that recent sale by James Murren is the biggest insider sale of MGM Resorts International shares that we’ve seen in the last year. That means that an insider was selling shares at around the current price of US$31.39. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Happily, we note that in the last year insiders paid US$21m for 813.61k shares. But insiders sold 696870 shares worth US$22m. Over the last year we saw more insider selling of MGM Resorts International shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
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. We usually like to see fairly high levels of insider ownership. It’s great to see that MGM Resorts International insiders own 0.8% of the company, worth about US$127m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About MGM Resorts International Insiders?
An insider sold stock recently, but they haven’t been buying. Zooming out, the longer term picture doesn’t give us much comfort. On the plus side, MGM Resorts International makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for MGM Resorts International.
But note: MGM Resorts International may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned.
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