Insiders Buying Coast Entertainment Holdings Might Wish They Invested More, Stock Gains 18%

Insiders who bought Coast Entertainment Holdings Limited (ASX:CEH) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$27m as a result of the stock's 18% gain over the same period. As a result, the stock they originally bought for AU$426.9k is now worth AU$472.4k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Coast Entertainment Holdings Insider Transactions Over The Last Year

The Lead Independent Non-Executive Director David Haslingden made the biggest insider purchase in the last 12 months. That single transaction was for AU$108k worth of shares at a price of AU$0.39 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.47), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Coast Entertainment Holdings insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Coast Entertainment Holdings

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

Does Coast Entertainment Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 14% of Coast Entertainment Holdings shares, worth about AU$25m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Coast Entertainment Holdings Insiders?

The fact that there have been no Coast Entertainment Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Coast Entertainment Holdings insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Coast Entertainment Holdings you should be aware of.

But note: Coast Entertainment Holdings 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 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.